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: TDS :: empanelment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: VAT RATES :: cpt :: articles on VAT and GST in India :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: form 3cd
 
 
News Headlines »
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits
 Want to save tax? Here are 6 best investment options for you
 Income Tax department activates e-filing facility for all ITRs
 All the income-tax return forms for the current assessment year are available online
 New GST – CONCEPT & STATUS – As on 01st May, 2017

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 2017 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