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LIC HOPES ULIPS WILL CONTINUE TO BE TAX-EXEMPTED IN DTC REGIME
June, 25th 2010
The head of the countrys largest insurer Life Insurance Corporation of India (LIC) is optimistic that unit-linked plans (Ulips) will continue to be tax-exempt despite the revised proposals of the Direct Tax Code (DTC) calling for taxation of the product. Currently Ulips, which account for nearly 80 percent of the new premium collections, and other insurance schemes like endowment plans, money-back and wholelife policies are treated on a EEE (exempt, exempt, exempt) format implying that the subscriber to these products does not pay taxes either at the time of paying the premium, receiving interest or at the time of withdrawing. Ulips are considered as hybrid products incorporating investment and insurance cover as traits.
 
 
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