Non -residents will get a big discount on ULIP returns, but with this condition

Tax Exemption on Ulip Returns: Finance Minister Nirmala Sitharaman presented the General Budget for Financial Year 2025-26 on 1 February 2025. During this time, he has also given great relief to such non -residents on tax, who wants to buy any insurance policy including ULIPs from a company registered in an IFSC sector.

Tax exemption will be available on ULIP returns

Now in all insurance policies purchased from the IFSC registered office, the insurer will get a discount on tax under Section 10 (10D), even if the premium payable for ULIPs is more than Rs 2.5 lakh or more than Rs 5 lakh for any other policy. This amendment will be applicable from 1 April 2025.

However, it may seem that there is no complete discount on tax. But the Finance Minister has added a limit clause to it, without which this exemption will not be given on tax for insurance policies purchased from the IFSC sector. IFSC i.e. International Financial Services Center (IFSC) is currently in Gandhinagar, Gujarat. Companies setting up their registered offices in this field also get other benefits on tax.

Income tax department has given this regarding tax exemption

Said

In Budget 2025, the insurance policy buyers of IFSC sector will be given benefits, on this, the Income Tax Department said- Income Tax Department said in the question about Budget 2025 in the question about frequently asked- Section 10 (10D) in Finance Bill 2021 Amendment in tax exemption has been proposed to ensure that the Return Capital Gains and Tax Premium Amounts received under the Life Insurance Policy issued by Insurance Intermediary Office located in IFSC (ie ULIP 2, A discount will be given unconditional at Rs 50,000 and Rs 5,00,000 for other policies). However, if the annual premium is more than 10 percent of the sum insured, then tax exemption cannot be taken advantage of in such cases.

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