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

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
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Chhattisgarh High Court Condones Delay Of 55 Days In Filing Appeal Before ITAT

The Chhattisgarh High Court has condoned the delay of 55 days in…

Relief To Axis Bank: Discount On ESOPs Is Allowable As Deduction: ITAT

In a major relief to Axis Bank, the Income Tax Appellate Tribunal…

Delhi High Court Disapprove Dept’s Endeavours To Attribute Excess Profits To Adobe 

The Delhi High Court, in a compelling judgment, frowned upon the department’s…

Calcutta High Court Quashes Income Tax Transfer Order Issued Without Supporting Documentation

The Calcutta High Court has quashed the income tax transfer order issued…