Proceeds received by the nominee on the death of the insured is tax free in the hands of the nominee.
But, if a policy is a Keyman insurance policy then the proceeds are not tax free.
For a life insurance policy issued between 1 April 2003 and 31 March 2012 if the premium payable in any year exceeds 20% of the actual sum assured, then the policy proceeds would be taxable for the insured at the marginal rate of taxation.
For life insurance policies issued on or after 1 April 2012 if the premium payable exceeds 10% of the sum assured, the policy proceeds would be taxable at the marginal rate of taxation.
In case of severe disability or disease, as specified by the Income Tax Act, and if his/her policy was issued on or after 1 April 2013, then the limit of 10% will be increased to 15%
SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
