Finance Made Simple with Tarannum Hasib | Latest Taxation Rules on ULIPs

Video Translation

Vivek Law: Hello and welcome to this very special series - finance made simple.

Joining me today is Taranum Hasib who's the Chief Distribution Officer at Canara HSBC Life Insurance. Thanks very much uh Tarannum it's a pleasure talking to you.

The big question which is on everybody's mind this year's budget brought in the capital gains tax on ULIPs with the intention of bringing it at par with mutual funds. How would you react to that what could be the impact of that on consumers according to you?

Tarannum: I think this particular thing has become talk of the town for the insurance world now. And to put it in a nutshell - the new budget proposal has actually brought in a new law on ULIPs and it says that the exemption for any ULIP premium paid above two and a half lakhs by any individual in a financial year will not be getting 10 (10D) exemption and will not be applicable rather for 10 (10D) exception. So, that is one of the biggest change but having said that the applicability continues for annual premiums on ULIPs below two and a half lakhs so that continues to stay and also in case of death of the investor the entire proceeds are again exempt in under section 10 (10D). So, these are the changes which have been brought in and these were made applicable from first fair bits directly so we had to really gear up to implement them and also educate the customer accordingly.

Vivek Law: All right we leave it there thank you very much for joining me and sharing your thoughts and perspective on a very important subject. Thank you once again.

Tarannum: Thank you so much, Vivek. It was a pleasure. Thank you.