Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: empanelment :: form 3cd :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India
 
 
General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

New tax regime for policies sold before April 2011
October, 01st 2009

Insurance companies have asked the government to shift to the new tax regime under the Direct Tax Code only for those policies sold after the proposed Code came into effect from April 2011.

The draft code, circulated for public comments, had suggested that life insurance policies should be taxed at the time of maturity. So, the contribution and accumulation would be exempt from tax payments, but the government would levy tax on the withdrawal amount.

The exempt-exempt-tax (EET) method of taxation is proposed to be introduced from April 2011 and would also cover policies purchased before the cut-off date.

On its part, the Life Insurance Council, the industry lobby, has suggested that only policies sold from April 2011 should be subjected to the new system of levy.

The companies argued that it would be unfair on individuals who had purchased a cover after factoring in possible returns. Through the Direct Tax Code, the terms were proposed to be changed mid-way through the policy term.

A person who started saving early did not know that the maturity amount would be taxed. We would like to protect his investment. There are a number of issues which needs to be addressed," said Life Insurance Council Secretary General SB Mathur.

Life and general insurance companies are demanding a reduction in the proposed rate of minimum alternate tax (MAT), proposed at 2 per cent, to 0.25 per cent on the grounds that the rate suggested in the draft document was too high.

Further, insurance companies are seeking an exemption from the payment of tax on the profit derived from the sale of investment. "The general insurance industry has reported underwriting losses of around Rs 4,732 crore during 2008-09. The implementation of the new tax code will bring down the investment yield substantially," said SL Mohan, Secretary General of General Insurance Council.

Most general insurance companies make provisions for underwriting losses through treasury gains and end up reporting profits.

"The grandfathering provision would reduce the tax burden on investments for some time, but the real issues such as MAT would still be relevant," said Bajaj Allianz General Insurance's Chief Executive Officer Swaraj Krishnan.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions