Budget 2012 Income Tax: Exemption and decuction for Life Insurance policies now require Sum Assured atleat 10 times of premium
Consequential amendment has been made in section 10(10D) and 80C of Income tax requiring Sum Assured to be at least 10 times of premium to require getting the benefits of the mentioned sections. This is consequential to the guidelines of IRDA requiring the policies to provide at least 10 times Sum Assured.
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what is the definition of 10 10d if we take the ploicy 22.03.2012 than we take the benefit of its or we take 01.04.2012 than we take its benefit or not and how
Section 10(10D) gives benefit of exemption of amount received from any insurance policy on maturity. Currently if you take any insurance with insurance cover of more than 5 times of annual premium, the amount you will get on maturity is exempt from tax. In this budget the eligibility for taking this benefit is proposed to be increased to only insurance plans which provide insurance cover of at least 10 times of Annual Premium.
so, if one takes a Policy before 31st March 2012 – wherein the assured amount is only 5 times and the age of the investor is 45 years, will the returns in lieu of this policy, expected after 20 years in 2032, be exempt from tax in that year ?