My brother is an NRI & has been investing in Insurance policies since they offer tax free returns which can be taken to the country they reside in. I hv been hearing, since budget that after 1April, all new investments in insurance policies by NRIs will be taxable & the returns will be given in future after deduction of tds @30%. Is this true & how this can be dealt with?
Ans: It is proposed to tax income from insurance policies issued after 1.4.2023 (other than ULIP for which provisions already exists) having premium or aggregate of premium above Rs.5,00,000 in a year. In case policy is already taken, proposed amendment will not be applicable.