Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: due date for vat payment :: cpt :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: form 3cd :: empanelment :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT Audit
 
 
News Headlines »
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C

Life cover set to cost more with new tax proposals
July, 04th 2007
The premium on life insurance policies is slated to rise, as the finance ministry is likely to levy service tax on the fund management fees or the investment part of those policies. A decision on this issue will be taken in the next few weeks.

Over half the policy holders in the country use life insurance as an investment tool and for various tax saving purposes. Around 85% of consumers prefer policies that provide risk benefits as well as investment opportunities.

Bringing fund management fees or the investment part of policies within the tax net will boost the governments revenue significantly.

Service tax is already levied on the risk premium part of life insurance policies. Banking and financial services is estimated to be the second largest contributor to the governments service tax kitty.

We are of the view that the investment part of a life insurance policy must be brought under the tax net. There is no reason why the investment component should not be taxed, especially when the risk part of the policy comes under the tax net, an official source told FE, adding that a notification to this is expected to be issued by month end.

POLICY PREMIUM

Service tax is already levied on the risk premium part of life insurance policies
Finmin is in discussions with various stakeholders before taking a decision
Life insurers, however, do not expect any major impact on balance sheets

Insurance companies levy fund management fees to meet expenses arising from managing funds in unit-linked insurance plans (Ulips).

The cost is absorbed by the policyholder and is factored into the market value of the Ulip. The ministry is already in discussions with various stakeholders, including the Insurance Regulatory Development Authority.

Last month, the government also asked life insurance companies to give their views on the issue.

Life insurance companies, however, feel that the imposition of service tax on the investment component of the life insurance policy would not have any major impact on the industry or on their balance sheets.

Even if service tax is levied on the investment part, it would not be a significant amount for an individual customer and we feel that it would not deter growth in the sector in any way, said a senior official at Max New York Life.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 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