New rule has come, now more than 5 lakh amount in insurance policy will not be tax free

The Income Tax Department has made a new rule under the calculation of income from life insurance. Under the new rule, premium of Rs 5 lakh or more will be taxed. Let us know on what conditions it will remain tax free.

The Income Tax Department has issued a new rule regarding life insurance policy. This rule is for those people who have paid more than Rs 5 lakh on the premium of life insurance policy. CBDT has issued a notification by changing the Income Tax Amendment Rule 2023. According to the rule, now more than 5 lakh amount in the insurance policy will not be tax free. On the other hand, if someone has taken such a policy on or after April 1, this rule also applies to that. Let us know what else CBDT has said in this matter…

This change happened

According to the changes made by Income Tax, tax exemption on maturity benefit under section 10(10D) on policies issued on or after April 1, 2023 will be given only if the total premium paid by an individual exceeds 5 lakh per annum up to Rs. If it is more than Rs 5 lakh then tax will be levied on it.

Income will be taxed

Apart from this, the payment of premium of more than five lakhs will be calculated from income and tax will be levied as per rules. Changes in the tax provision in relation to life insurance policies except ULIPs were announced in the Union Budget 2023-24.

No tax on maturity amount on death

According to experts, tax will be levied after calculating the income earned from the amount paid on premium of more than five lakh rupees. This tax will be calculated on maturity and then the entire amount will be paid. At the same time, the Income Tax Department has said that tax will not be imposed on the amount of premium received on the death of a person.