Budget 2019 tweaks taxes on insurance maturity proceeds
Life insurance is a popular product amongst Indians. But a lot of taxpayers do not understand how receipts after the maturity of a life insurance policy are taxed. TDS (tax deducted at source) also comes into play in cases where receipts are Rs 1 lakh or more. TDS of 1 per cent is deducted by the insurance company before a payment is made. In the 2019 Budget, the government has made some changes to the TDS rate on proceeds from a life insurance policy and to the amount on which TDS is deducted. These aspects need to be understood in detail.