Pay tax on Ulips if SC calls them 'not pure insurance'

[IndiaInsurance]

Unless the Supreme Court says that unit-linked insurance plans are a pure life insurance product , the government would impose a tax on withdrawals from savings made in this popular scheme, official sources told FE. But whether Ulips would continue to be among the saving schemes eligible for tax deduction won t be impacted by its insurance/investment nature. Sebi would rather treat Ulips as an investment tool than an insurance product. Ulips would lose much sheen if tax exemption goes. The revised DTC discussion paper has said that the extant EEE method of taxation of permitted savings intermediaries would continue in the ...

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