Budget 2023 Changes in 10(10) D Tax Benefit.
W.e.f. 01 April 2023, Government is doing away with Income Tax Benefit on Maturity Proceeds.
Section 10(10D) of the Income Tax Act, 1961 in India pertains to the taxability of the maturity proceeds received from life insurance policies. According to this section, any amount received by an individual as maturity proceeds from a life insurance policy, including bonuses, is exempt from tax if it satisfies certain conditions. These conditions include that the premium paid for the policy does not exceed 10% of the sum assured in case of a life insurance policy, and the policy was issued on or after 1st April, 2012. If these conditions are satisfied, the maturity proceeds are fully exempt from tax, making it a tax-efficient investment option for individuals.
Disclaimer: The information provided in regards to Section 10(10D) of the Income Tax Act in India is for informational purposes only and should not be construed as investment advice. It is important to consult with a financial advisor before making any investment decisions to ensure that the investment aligns with your financial goals, risk tolerance, and overall financial situation.
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