The Finance Act, 2021 has inserted the Fourth and Fifth Provisos to section 10(10D) to restrict exemption in case premium payable for Unit Linked Insurance Plan (ULIP) exceeds Rs. 2,50,000.
Consequent to amendment, the CBDT has issued Circular 2/2022 & notified Rule 8AD to determine exemption and capital gains if the exemption is unavailable.
Read Taxmann’s comprehensive analysis on taxation of ULIPs covering the Finance Act 2021 amendments, Circular and Rule 8AD.
Drafted by Taxmann’s Editorial Team.