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Ameet Patel

Ameet Patel

Ameet Patel is a Chartered Accountant and a tax partner at Sudit K Parekh & Co., Chartered Accountants. Ameet is a rank holder and has secured ranks at the Inter and Final CA examinations at the all India level.
He is an avid writer and has contributed articles to various magazines and websites including CNBC's He specializes in corporate taxation and advises several reputed companies, mutual funds and FIIs. Read more

Other/latest questions on finance

Dear sir, I am an Indian national living in Singapore for last couple of years. I am planning to start insurance policy here in Singapore. However, I may relocate back to India in 2-3 years time. The policy will mature 10 years down the line. I would like to check whether I need to pay any tax in India if I will be in India when policy matures 10 years down the line and get the money in India. Appreciate your input and help. Regards, Ravi
Asked by Ravi Shah
Under the Indian income tax provisions, in case where a person is a resident and ordinary resident in India, his global income would be taxable in India. In your case, you would be a resident and ordinary resident at the time when you receive the maturity proceeds of your insurance policy (i.e after a period of 10 years), thus, the amount received would be taxable in your hands at the prevailing slab rates. In India, there is an exemption available under section 10(10D) in respect of money received on maturity of life insurance policy. The main controversy in your case would be whether this exemption is available even in respect of money received on maturity of a policy issued by a foreign insurance company. This is a debatable matter and could lead to litigation. There is a decision of the Mumbai Bench of the Income-tax Appellate Tribunal where it has been held that the exemption would be available even in respect of maturity amount of a life insurance policy issued by a foreign insurance company. If you have the ability to fight a case with the Indian tax authorities, you could take a stand based on this decision (Taragauri T. Doshi v/s. ITO).
Answered by NRIMatters Team