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: due date for vat payment :: empanelment :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: VAT Audit :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4%
 
 
General »
 Simplified one page Income Tax Return Form: Changes to keep in mind before filing tax return for AY2017-18
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 GST coming July 1 despite calls for delay: Revenue Secretary Hasmukh Adhia
 Centre introduces provision of taxation on NPS in Income Tax Act
 Income Tax Department Clarifies On Cash Withdrawal From Banks, Post Offices
 The Goods And Services Tax (Compensation To States) Bill, 2017
  Goods and Service Tax (GST) and Real Estate Sector
 New Income Tax Rules On Home Loan Come Into Effect
 Here's how late filers can save on stress and taxes
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib ?Kalyan Yojana, 2016
 Companies should invest in upgradation of tax technology

Maturity proceeds of insurance are not subject to tax
November, 15th 2013

I am working in Singapore and planning to buy an insurance policy here which will mature in 15 years. I intend to relocate to India in another seven years. Will there be any tax implications as it will mature when I am in India?

—George Mathew

When your policy matures you will be a resident of India and your income as a resident will be taxable. Hence, your global income will be liable to tax in India.
The maturity proceeds of the insurance policy would be subjected to tax in India as per the then applicable provisions of the Indian Income-tax Act.
As per the current provisions of the Act, there is an exemption under section 10(10) in respect to maturity proceeds of a life insurance policy subject to the condition that the annual premium payable does not exceed 20% of the sum assured.

Though section 10(10) does not require the policy to be issued by an Indian insurance company; the tax department may take such a view in which case there could be some litigation. However, there is a decision of the Mumbai Tribunal in the case of Taragauri T. Doshi vs the income tax office where it has been held that the maturity proceeds of a life insurance policy issued by a foreign insurer is exempt from tax.

I was in Peru for my post-doctorate research for two and half years. During this period I didn’t filed my income tax returns. Will I have to pay a big penalty due to this?
—John D’Souza

The due date for filing income tax returns for an individual who does not have any business income liable to tax audit is 31 July following the end of the financial year for which the return is to be filed.

You are required to file your income tax return if you have gross total income exceeding the maximum amount not liable to tax, or you have incurred losses which you want to carry forward for future set off, or you are claiming an income tax refund. The maximum amount not liable to tax for the financial years 2012-13 and 2013-14 is Rs.2 lakh. If your Indian income is lower than this, it’s not mandatory to file returns. If tax returns are filed after the due date, interest is payable on the amount of unpaid tax. Also, if the return of income is not filed within one year of the end of the financial year you may be charged a penalty of Rs.5,000, at the discretion of the assessing officer.
If you are claiming a refund, you will not be eligible for receipt of interest on refund for the period of delay in filing the return. Belated return of income can be filed suo moto within two years from the end of the financial year. If the return of income is not filed, and the tax department issues a notice asking an assessee to file it, in addition to payment of unpaid tax and interest, there would also be a penalty on the unpaid tax.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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