Now you can buy life insurance plans completely online right here.
Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.
Kotak e-Invest is a comprehensive Unit Linked Life Insurance Plan that can be customized as per your goals and needs - be it protection; investment; financial security for child or retirement planning.
Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and insurance cover against any eventuality.
Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!
The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.
Our representative will get in touch with you at the earliest.
ULIPs are a very popular type of investment. In a ULIP plan, the policyholder pays a certain amount, called a premium, from which a portion is assigned to various fund possibilities, and the advantages of the investment are realized. When purchasing ULIP, an individual does not need to acquire a separate life insurance policy because it is incorporated in the plan
With many individuals flocking to this financial investing instrument, it has carved out a niche in the investment market thanks to its dependability, extensive benefits, and capacity to generate considerable financial rewards. ULIP tax exemption is also one of the reasons they’ve become so well-known. However, certain modifications structure for the ULIP plan tax exemption may create confusion among potential and present investors.
This article will take you through all the previous and new ULIP income tax exemptions to help you understand this tool better.
On January 19, 2022, the Central Board of Direct Taxes (CBDT) released a statement outlining the mechanism for determining whether ULIPs are tax-exempt. If the yearly premium for ULIPs topped ₹2.5 lakh, the ULIP tax-exempt status would be removed, according to Budget 2021. Nevertheless, there were many questions about how the framework would operate, particularly in the situation of multiple ULIPs, which include both types purchased before and after the budget plans.
The Central Board of Direct Taxes (CBDT) stated on January 19, 2022, the process for evaluating whether ULIPs are tax-exempt. According to the current CBDT announcement, the total premium of both new and old ULIPs would be evaluated for ULIP tax exemption. If the total surpasses ₹2.5 lakh, the exemption will not apply to new ULIPs with premiums over ₹2.5 lakh.
The return or income on the maturity of ULIPs with annual premiums above ₹2.5 lakh shall be assessed as capital appreciation and levied accordingly under section 112A. However, the cap of ₹2.5 lakh on the annual premium of ULIPs would apply only to plans bought on or after February 1, 2021.
The new government taxation law will only apply to future new ULIPs as ULIP income tax exemption, so you won’t have to worry about your current ULIPs where you may continue to invest your premium until the policy matures. On the other hand, purchasing numerous policies will not assist with new ULIPs.
ULIPs remain an appealing investment choice, notwithstanding the increased tax rules. To begin with, ULIPs combine the protection of life insurance with the potential for larger investment returns. This ensures your family’s safety while also providing the best long-term returns. Furthermore, on premiums up to ₹1.5 lakhs, ULIPs continue to be tax-free. Moreover, the death benefit is still tax-free under Section 10 (10D) of the Internal Revenue Code.
Finally, unlike the intricate equity-linked market investing choices, ULIP plans are simple to grasp. As an investor, you’ll have a simple and painless time matching your fund allocation to your risk tolerance and financial objectives.
ULIPs are a popular choice among individuals, regardless of the previous and new ULIP tax exemptions. However, before you get your hands on this plan, make sure it’s compatible with your budget and personal goals.
- A Consumer Education Initiative series by Kotak Life
Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...Know more
Kotak Assured Return Employee Benefit Plan is an insurance plan designed for Employers /Trusts, Employer – Employee groups who wants experts to mana...Know more
Kotak Fortune Maximiser is a limited pay participating endowment plan, which can be customized as per your requirement to help you achieve your life g...Know more