Indians living Abroad can now avail GST Exemption on their LIC policy. Non-resident Indians have the same rights as Indian citizens when it comes to Goods and Services Tax (GST) exemptions. If a Non-Resident Indian meets the criteria set out in the applicable law, he/she can avail of this benefit.
Non-Resident Indians (NRIs) have received a major tax relief from the Government of India, in the form of exempting them from paying Goods and Services Tax (GST). This exemption was announced as part of the Union Budget 2021. The announcement provides much needed relief to NRIs who are living abroad and are willing to buy LIC plans to secure their loved ones.
The GST is 4.5% in the first year premium and subsequently it is charged @ 2.25% of the premium amount for the remaining years.
The GST exemptions announced by the government have been welcomed by NRI policyholders across the world who were previously subject to high taxation rates while buying life insurance products in India. With this move they can now avail all types of benefit provided under different LIC policies without worrying about hefty taxation charges.
Lic Hub
The LIC of India offers an array of insurance and investment products to cater to the needs of a diverse range of customers. Let us take a look at the various types of plans offered by Life Insurance Corporation of India:
Tax Saving
Investment Plans
Senior Citizens
Kids Plan
Women
LIC for TAX Saving:
Enjoy the dual benefit of tax deductions under Section 80C and comprehensive insurance coverage with LIC’s tax-saving policies.
Explore LIC's top-performing plans, which provide the perfect blend of investment growth and insurance protection to achieve your financial aspirations.
LIC offers plans tailored for women, focusing on their unique needs. These plans include savings, life cover, and financial independence to secure a brighter future.
Ans: No, premiums paid for LIC policies are free from GST on premium payments for LIC policies from October 12, 2021.
How can an NRI apply for the current policy's GST Exemption?
Ans: Together with the payment for the premium, you must ask for a GST exemption. A NRE account must be used to pay the premium. You must pay the premium at the branch cash counter because the GST Exemption is not accessible in the online payment method.
Will the maturity amount still be tax-free if I chose to have the GST withheld from my LIC premium payment?
Ans: Yes, it won't change the maturity amount and you won't pay taxes on it.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in