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Budget 2023: A few hours have passed since the budget speech. With the passage of time, now things are coming out layer by layer. There is disappointing news for the insurance sector. Finance Minister Nirmala Sitharaman has announced that if a person pays an insurance premium higher than Rs 5 lakhs, they will have to pay taxes. In simple words, she supposes that she has purchased a life insurance plan. Whose annual premium is more than 5 lakhs. So in such a situation, the tax should be paid. Let us tell you, the new rule will be applicable from April 1, 2023.
The Finance Minister has said in his speech: “It is proposed to impose a tax on life insurance policies where the annual premium (other than ULIP) exceeds Rs 5 lakhs. There will be no tax on the insurance premium up to 5 lakhs. This will not affect the tax exemption of the amount received upon the death of the life insured. Apart from this, it will not apply to insurance policies issued until March 31, 2023.
What is the standard deduction, in which taxpayers will get a refund of Rs 52,500?
Pankaj, CEO and MD, Optima Money Managers, says, “The latest budget announced taxes on ULIP premiums above Rs 2.5 lakh. But life insurance products were not touched. But this budget has not remained intact. Finance Minister Nirmala Sitharaman has decided to tax life insurance premium above Rs 5 lakh.
SEBI registered expert said: “Those who invest in life insurance will not have to pay any tax up to Rs 7.5 lakh. Life insurance of Rs 5 lakh and ULIP of Rs 2.5 lakh will be exempted annually.
Know what will be cheap and what will be expensive after the budget