CBDT Notifies Computation Of Income Chargeable To Tax For Amount Received Under Life Insurance Policy

The Central Board of Directed Taxes (CBDT) has notified the computation of income chargeable to tax for the amount received under the life insurance policy.

The CBDT has inserted Rule 11UACA in the Income-tax Rules,1962 by notifying Income tax Amendment (Sixteenth Amendment), Rules, 2023.

Rule 11UACA states the manner of computation where any person receives at any time during any previous year any sum under a life insurance policy.

The sum received under a life insurance policy would mean any amount received under such policy which is not to be excluded from the total income of the previous year in accordance with the provisions of clause (10D) of section 10, other than the sum received under a unit linked insurance policy; or being the income referred to in clause (iv) of sub-section (2) of section 56.

Notification No. 61/2023

Date: 16/08/2023

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