Respected sir,
I Am Ankita Kathiriya Studying in MBA And want to know what is the Effect of DTC on LIC business due Change in 80 C and EEE VS. EET. Please reply me
1 Answers
After Direct Tax Code (DTC) comes into play from 1st April, 2012, Amount received on maturity is exempted from Income tax, if the premium paid every year is less than 5% of sum assured & maturity amount is received on completion of original insurance period. Proceeds received on death are completely exempt.
Also premium paid towards only those insurance policies where Sum insured is atleast 20 times the annual premium paid, will be considered for tax exemption.
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