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HomeDirect TaxFinance Bill 2025 Amends Section 10(10D) To Exempt Life Insurance Proceeds From...

Finance Bill 2025 Amends Section 10(10D) To Exempt Life Insurance Proceeds From IFSC Intermediaries Without Premium Cap

Direct Tax

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By Amit Sharma
Finance Bill 2025 Amends Section 10(10D) To Exempt Life Insurance Proceeds From IFSC Intermediaries Without Premium Cap

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The Finance Bill, 2025 has introduced a significant amendment to Section 10(10D) of the Income-tax Act, 1961, providing a major relief for life insurance policyholders of International Financial Services Centre (IFSC) insurance offices. The amendment ensures that proceeds received on life insurance policies issued by IFSC insurance offices will be exempted from taxation without the condition related to the maximum premium payable on such policies.

Key Changes in Section 10(10D)

The proposed amendment rectifies an earlier reference to IFSC insurance intermediary offices, replacing it with the correct term—IFSC insurance offices. This correction aligns the tax exemption framework with the actual entities issuing such insurance policies, ensuring a smoother regulatory implementation.

Prior to this amendment, the exemption on life insurance proceeds under Section 10(10D) was subject to conditions, including a cap on the premium amount. However, with the revised provision, life insurance policies issued by IFSC insurance offices will enjoy a broader tax exemption, making IFSC-based insurance offerings more attractive to policyholders.

Read More: Finance Bill 2025: Presumptive Tax Provisions Under The New Section 44BBD

Amit Sharma
Amit Sharma
Amit Sharma is the Content Editor at JurisHour. He has been writing about the Indian legal market. He has covered tax & company litigation stories from the Supreme Court, High Courts and Various Tribunals. Amit graduated from MLSU Law College with B.A.LL.B. and also holds an LL.M. from MLSU, Udaipur, Rajasthan. An Advocate in Taxation, and practised in Tribunals as well as Rajasthan High Court and pursued Masters in Constitutional Law. He started out small with little resources but a big plan to take tax legal education to the remotest locations across India and eventually to the world. His vision is to make tax related legal developments accessible to the masses.

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