Capital Gain on maturity amount of Specified ULIP - (New) Section 67(5) / (Old) Section 45(1B)

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....y year - Such Profit and gain shall be deemed to be the income of such person in the tax year in which such amount was received Determination of Taxable Amount Rule 49 prescribes the method for determining taxable capital gains from a specified ULIP. (a) First Receipt during the Tax Year Where an amount is received for the first time under the policy: Capital Gain = A - B Where: • A = amount received, including bonus allocation; and • B = aggregate premiums paid up to the date of receipt. Accordingly, only the excess of the receipt over the premiums invested is taxable. (b) Subsequent Receipts Where further amounts are received after the first receipt: Capi....

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....ch person shall be chargeable to income-tax under the head "Capital gains" and shall be deemed to be the income of such person of the previous year in which such amount was received and the income taxable shall be calculated in such manner as may be prescribed. [ Amended vide Finance Act, 2025 ] • In other Words • Any person (individuals, HUFs, companies, etc.) receiving amounts under a unit linked insurance policy (ULIP). • ULIPs to which the exemption u/s 10(10D) does not apply. • All amounts received under such policies, including sums allocated by way of bonus. • Any profits or gains arising from receipt of such amount by such person shall be chargeable to i....

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....apital Gain". • Computation of Capital Gain under section 45(1B), as per Rule 8AD :- a. Where the amount is received for the first time under the ULIP during the PY, the capital gain shall be computed with formula A-B A = Consideration amount received for the first time under ULIP including any bonus amount B = Aggregate of the premium paid during the term of ULIP till the date of receipt of amount as referred to in 'A' b. Where the amount is received for second time or subsequently, the capital gain shall be computed with formula C - D C = Consideration amount received for the first time under ULIP as referred under clause (a) above including any bonus amount excluding the amou....