• Tax on insurance policy bought before 01.04.2003

Hi,
I had bought a single premium policy from ICICI Pru on 19.02.2003 wherein the life coverage was 105% of the premium amount. The finance bill introduced new tax rules for eligibility under 10(10D) for all policies bought starting 01.04.2003. My understanding is that as my policy was bought before that date, the proceeds from my policy are tax free as per the old rules of 10(10D). Can you please confirm?

regards
Asked 1 month ago in Income Tax from Bangalore, Karnataka

Dear Sir,

 

Hope you are doing well !!

 

Yes, your understanding is correct.

 

 

 

Payal Chhajed
CA, Mumbai
3730 Answers
50 Consultations

5.0 on 5.0

Hello,

 

Before the changes in law with effect from April 1, 2003, any proceeds received under an insurance policy were tax-free under Section 10(10D) of Income-Tax Act, 1961.

I hope that this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
1587 Answers
5 Consultations

5.0 on 5.0

Hello Sir,

 

Yes, your policy are tax free as per the old rules of 10(10D).

Karishma Chhajer
CA, Jodhpur
1522 Answers
11 Consultations

5.0 on 5.0

Yes since the limit relates to policy issued after 01.04.2003 your policy wont be covered there and hence it would be fully exempt.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
2688 Answers
24 Consultations

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