Here’s how the new CBDT circular has impacted Ulip taxation benefits

Ahead of budget 2022 which will be presented by the finance minister in a few days, let me take you back to Budget 2021, when the Ulip (unit linked insurance policies) industry got a shock as the new provisos for claiming exemption of the sum received from Ulip were added. There were still some grey areas with respect to the newly added provisos which are now clarified in more detail by CBDT (Central Board of Direct Taxes) in the ‘Guidelines under clause (10D) section 10 of the Income-Tax Act, 1961’ vide circular no. 2 of 2022, dated 19 January 2022.

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