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 :: VAT Audit :: cpt :: VAT RATES :: ACCOUNTING STANDARDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

Insurance firms to meet Finmin on Ulip taxation issue
June, 21st 2010

Although the uncertainty over regulation of the Unit-Linked Insurance Products (Ulips) has been settled, investors in these schemes are now faced with the possibility of getting taxed at the time of withdrawing funds and industry players will soon meet the finance ministry officials to address the issue.

"Ulips are basically investment plans and need to be taxed. The final view, however, will be taken at the time of the formulation of the code," finance ministry sources said.

However, life insurers feel that Ulips are not pure investment products and should not be taxed.

"We have maintained that Ulips are not pure investment products. We will approach the revenue department soon," Life Insurance Council Secretary General SB Mathur said.

The revised draft of the Direct Taxes Code (DTC) extended I-T exemption at the time of withdrawal to only pure life insurance products.

"Approved pure life insurance products and annuity schemes will also be subject to the EEE (exempt-exempt-exempt) method of taxation," the revised draft said.

This means that Ulips, hybrid investment-cum-insurance products that account for over 50 per cent of the total life insurance business in the country, are excluded from the EEE method. Policyholders, hence, will have to pay tax at the time of withdrawal, sources explained.

At present, there is no tax levied on Ulips returns, an equity and bond-linked insurance instrument.

It was, in fact, the mixed nature of Ulip schemes that led to a turf war between insurance watchdog Irda and market regulator Sebi over the issue of jurisdiction. The matter was settled by an ordinance issued late on Friday, which gave Irda the power to regulate Ulips.

According to the revised DTC, which will replace the 50-year- old Income Tax Act, only six specified instruments will qualify for EEE (exempt-exempt-exempt) taxation, including pure insurance products.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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