In the 2025 budget, the insurance plan linked to tax rules (ULIP) has become clearer. Taxation on ULIPs will be similar to other investment options such as mutual funds. This change will help investors make the right financial decisions.
If you invest up to 2.5 Lakh per year in one or more ULIP regimes, the amount at the due date will be 100%tax franchise. On the other hand, on other equity investments, long -term capital gains (LTCG) of 12.5% must be paid for a profit of more than 1.25 Lakh. But if a ULIP policy has more than 2.5 Lakh of bonuses per year, it will be considered as a capital asset. Profits of more than 1.25 Lakh will be taxed at 12.5%.
Understand this with an example: if a person invests 20,000 ₹ each month for 20 years and obtains an annual growth of 14%, then the investment will give a return of approximately 2.35 crores. After paying a tax of 23.2 Lakh on equity investment, the amount will be reduced to 2.12 crosses. While the ULIP Declaration will remain in tax franchise.
This means that investment in ULIP can save 23.2 Lakh in tax, which will maintain total yields. However, this tax franchise advantage will only be applicable to ULIP policies, which were purchased after February 1, 2021 and whose annual investment is up to 2.5 Lakh. All these ULIP plans, which are not authorized to exempt tax exemption under article 10 (10D), will be considered as common investment funds based on actions.
What is Ulip? The unit insurance scheme (ULIP) is a life insurance product in which the customer benefits from a double advantage of the creation of wealth and the protection of life insurance. In other words, insurance protection is also available in ULIP as well as investment.
On the death of the insurance lessee, the amount of insurance in the ULIP plan is paid to the candidate. In this, you get a long -term plan coverage on one side, and on the other hand, you also have the possibility of investing.
There are more news …