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Ingenious Nov 2023 to Jan 2024.pdf

We are happy to share the 1st anniversary issue of our in-house magazine INGENIOUS. The Ingenius magazine is a quarterly magazine prepared by the alumni of FCFP under the able guidance of our Guru Shri Gopinath Radhakrishnan sir. The magazine comprises of writeups related to economy, finance & industry based on our research.

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Issue: 7 In-house magazine of FCFP members Nov 2023 - Jan 2024
2
Issue: 7 In-house magazine of FCFP members Nov 2023 - Jan 2024
THE PROGRESSION
PLAY BY THE RULES
& BE REWARDED
RETIREMENT
SCIENCE
SEC 10(10D)
INGENIOUS
SAMACHAAR
INDIA
ON
MOON
3
Content Page
Ingenious Samachaar 4
The Progression - Play by the Rules & be Rewarded 7
Did you know? 10
Cer ficate Courses from Go-past 11
Meet the par cipants 12
Ar cle - Know more on Income Tax sec on 10(10D) 15
Cover Story - INDIA on MOON - CHANDRAYAAN 19
Meet the AWF Qualifiers 17
Ar cle - Re rement Science (Part-1) 21
CBDT Circular 28
Tes monial by Par cipants 25
Ar cle - Achieving Financial Freedom 24
Data Centre 27
Dear Readers,
Congratulating the readers, FCFP participants and the Gopast team for our 1st Anniversary issue
of our in-house Ingenious magazine.
We are pleased to present our 1st Anniversary Issue - 7th quarterly “Ingenious Magazine” for November 23 to
January 24 by the alumni of Foundation Course in Financial Planning (FCFP) 1st & 2nd Batch from Gopast
Centre for Learning Pvt. Ltd., under the able guidance of our Guru Shri Gopinath Radhakrishnan Sir. It compris-
es of write ups on financial products and latest news articles related to economy, finance and insurance industry
based on our research.
We are thankful, grateful and blessed for your support till date and wish the same support from you all ahead too.
Wish you a happy reading.
Thanking you & Regards,
On behalf of the Organizing committee of Alumni FCFP 2022
Nov 23 - Jan 24
INGENIOUS
4
Samachaar
What is G20?
G20 means - The Group of Twen-
ty is an international forum for govern-
ment leaders and central bank governors
from 19 indi-
vidual countries
and the Europe-
an Union (EU).
It was estab-
lished in 1999
in response to
the financial
crises of the late
1990s, with the
primary aim of
fostering inter-
national economic cooperation and global
financial stability. The G20 is composed
of most of the world's largest economies'
finance ministries, including both indus-
trialized and developing countries; it ac-
counts for around 80% of gross world
product (GWP), 75% of international
trade, two-thirds of the global popula-
tion, and 60% of the world's land area.
The G20 has since become one of the
most prominent and influential forums
for addressing global economic and fi-
nancial issues.
Who are the members of G20?
The G20 consists of 19 individual
member countries, which are Argentina,
Australia, Brazil, Canada, China, France,
Germany, India, Indonesia, Italy, Japan,
Mexico, Russia, Saudi Arabia, South
Africa, South Korea, Turkey, the United
Kingdom, and the United States. The
European Union is also represented, mak-
ing it a total of 20 members.
What is the purpose of G20?
The G20 Summit is held annually,
under the leadership of a rotating Presi-
dency. The G20 initially focused largely
on broad macroeconomic issues, but it
has since expanded its agenda to inter-
alia include trade, sustainable develop-
ment, health, agriculture, energy, envi-
ronment, climate change, and anti-
corruption.
How does G20 work?
The G20 Presidency steers the
G20 agenda for one year and hosts the
Summit. The G20 consists of two parallel
tracks: The Finance Track and the Sherpa
Track.
The G20 process from the Sherpa
side is coordinated by the Sherpas of
member countries, who are personal em-
issaries of the Leaders. Finance Track is
led by Finance Ministers and Central
Bank Governors of the member coun-
tries. The Fi-
nance Track is
mainly led by
the Ministry of
Finance. These
working groups
meet regularly
throughout the
term of each
Presidency. The
Sherpas oversee
negotiations
over the course of the year, discussing
agenda items for the Summit and coordi-
nating the substantive work of the G20.
In addition, there are Engagement Groups
which bring together civil societies, par-
liamentarians, think tanks, women, youth,
labour, businesses and researchers of the
G20 countries.
Who are the leaders of G20?
The G20 does not have a perma-
nent secretariat or president. The country
that holds the presidency rotates annual-
ly. The presidency is responsible for set-
ting the agenda, organizing meetings, and
representing the G20 on the international
stage.
About G20 Summit 2023
The year 2023 is memorable for
our India as the 18th G20 Summit was
held in New Delhi on the 09th and 10th
of September 2023 at Bharat Mandapam
International Exhibition-Convention Cen-
tre (IECC).
Our Motto/ theme - Vasudhaiva
Kutumbakam meaning One Earth, One
Family, One Future is rooted in ancient
Sanskrit texts and the goal of sustainable
development.
The G20 New Delhi Summit was
chaired by the Indian Prime Minister,
Narendra Modi.
Contd...
India hosts G20
Bharathi
Srinivasan
The finance ministry has wel-
comed the inclusion of Indian govern-
ment bonds into JPMorgan’s indices,
saying it is reflective of the confidence
in the economy.
DISCUSSIONS SINCE 2013
Talk of India entering into discus-
sions to become a part of global bond
indices had emerged in mid-2013 even
as the economy battled the 'taper tan-
trums' that sank the Indian rupee to its
(then) all-time low in late August. The
country needed investors to be confident
about its long-term growth prospects so
that funds could flow in, bolster the cur-
rency, fill up the foreign exchange cof-
fers, and stop the financial market melt-
down amid eye-wateringly high infla-
tion.
It was in these circumstances that
newly-appointed Reserve Bank of India
(RBI) governor Raghuram Rajan had
said in his first post-monetary policy
press conference that India had several
issues to discuss with the "bond index
people".
We will explore and see, based
on what their conditions are," Rajan had
said on September 20, 2013.
It is safe to say the talks have
been long — for almost 10 years after
Rajan's comments, in the early hours of
September 22, JPMorgan announced
India's inclusion in its Government Bond
Index-Emerging Markets (GBI-EM)
global index suite with effect from June
2024.
Contd...
India to sell 50 yr
BONDS Globally
Geeta Mohan
P.
Nov 23 - Jan 24
INGENIOUS
5
Samachaar
Contd...
India's presidency began on 1 De-
cember 2022, leading up to the summit in
the third quarter of 2023. The presidency
handover ceremony was held, in which the
G20 Presidency gavel was transferred from
Indonesian President Joko Widodo to Indian
Prime Minister Modi at the close of the Bali
summit. Indonesia held the presidency in
2022.
Indian Prime Minister Modi formally
handed over the G20 presidency to Luiz
Inácio Lula da Silva, the President of Brazil.
India will continue to hold the position until
30 November 2023.
What are the Features of G20 Summit
2023?
G20 India has put forth six agenda
priorities for the G20 dialogue in 2023:
1. Green Development, Climate Fi-
nance & LiFE
2. Accelerated, Inclusive & Resilient
Growth
3. Accelerating progress on SDGs
4. Technological Transformation &
Digital Public Infrastructure
5. Multilateral Institutions for the 21st
century
6. Women-led development
What is the Outcome of the G20 Summit
2023?
At the Summit, India was able to
leverage its economic significance to garner
support from all G20 member nations for a
Leaders’ Declaration recognizing the con-
flict in Ukraine without specifying any ag-
gressor. Modi, who chaired the Summit,
also advocated for reforming global institu-
tions like the United Nations Security
Council (UNSC) to align with the changing
world dynamics, which received backing
from the United States. The timing of the
G20 Summit was also opportune, following
India’s successful moon landing under the
Chandrayaan-3 program.
For more details on G20, you can visit their official
website - https://www.g20.org/en/
Contd…
In April 2020, the Reserve Bank
of India introduced a clutch of securities
that were exempt from any foreign in-
vestment restrictions under a "fully ac-
cessible route" (FAR), making them
eligible for inclusion in global indexes.
Currently, 23 Indian Government
Bonds (IGBs) with a combined notional
value of $330 billion are index eligible,
JPMorgan said.
About 73% of benchmarked in-
vestors voted in favour of India's inclu-
sion, it said.
INDIA NOT DESPERATE
"People would like to believe
that India is desperate (to get listed on
global bond indices), but we are not,"
a senior finance ministry official had
told Moneycontrol in August 2022
The lack of desperation from
India's side had a lot to do with the
economy's recovery following the may-
hem caused by the taper tantrums. The
best indicator here is the country's for-
eign exchange reserves, which hit an all
-time high of $642 billion in September
2021 — a far cry from the dwindling
$274 billion at the time Rajan took
charge as RBI governor in September
2013.
Policymakers had also warned in
recent months about the risks from be-
ing listed on these indices, chief among
them being increased sensitivity of do-
mestic policy to external factors, and the
need for domestic fiscal and monetary
policy to be more aware of global per-
ception and sensitivities
https://www.moneycontrol.com/news/
business/economy/a-decade-in-the-making-
indias-global- bond-index-inclusion-journey
-finally
The decision is the latest sign of
India’s growing appeal to international
investors as the country’s economic
growth outstrips peers, its geopolitical
influence grows and global companies
including Apple Inc. look for alterna-
tives to China. While foreigners play a
small role in the Indian bond market,
inflows have been picking up in recent
years and the country’s assets have
proven resilient to financial turbulence
that has roiled other developing-nations.
Read more at:
https://economictimes.indiatimes.com/
markets/bonds/jpmorgan-is-adding-india-to-
its-emerging-markets-bond-index/
articleshow/103850612.cms?
utm_source=contentofinterest&utm_medium
=text&utm_campaign=cppst
JP Morgan Chase & Co.
Has announced it will include
Indian government bonds to its emerg-
ing markets bond index from June 2024,
a much-anticipated move which could
attract more foreign flows into the do-
mestic government securities market.
The move can potentially attract about
$25 billion into the country, as per ana-
lyst estimates.
India, which will be included in
the GBI-EM Global index suite starting
June 28, 2024, is expected to reach the
maximum weight of 10 per cent in the
GBI-EM Global Diversified Index (GBI
-EM GD), JP Morgan said. Currently,
23 Indian government bonds with a
combined notional value of $330 billion
are index eligible. Inclusion of the
bonds will be staggered over 10 months
through March 31, 2025 (i.e., inclusion
of 1 per cent weight per month), it said.
“… this could prompt overall ~$26 bil-
lion of passive inflows as a one-off
stock adjustment over the scale-in peri-
od, while actual flows may be higher,
depending on market dynamics,” said
Madhavi Arora, Lead Economist,
Emkay Global Financial Services. A
Goldman Sachs report said the move
could prompt passive inflows of around
$30 billion (comprising emerging mar-
ket local dedicated funds, as well as
blended funds) over the scale-in period
as a one-off stock adjustment.
However, given India’s attrac-
tiveness from a yield and (low) volume
perspective, it could attract at least an-
other $10 billion of active flows. “So in
total, we think India’s fixed income
markets could see inflows upwards of
$40 billion over the next one and a half
years (where the phase-in period will be
completed by March 2025),” the Gold-
man Sachs report said. It said as several
emerging markets dedicated funds are
already set up on India, the flows will
be front-loaded, beginning immediately,
as investors pre-position for inclusion
next year.
CURRENCY APPRECIATION
Naturally, there will be a tenden-
cy for the currency to appreciate just as
it happened between 2003 and 2008 and
capital inflows into India surged. There-
fore, when there is a demand for inves-
tors to buy Indian government bonds
denominated in rupees then naturally
the demand for rupees will increase and
everything else being equal, it will lead
to a potential for rupee’s nominal appre-
ciation. So that is both a positive and a
challenge because we have to make sure
that the rupee stays competitive as well.
In that sense, there is a potential for
currency appreciation when the index
inclusion starts to happen and the de-
mand from investors for Indian govern-
ment securities starts to rise,” Chief
Economic Advisor in the Union Minis-
try of Finance V Anantha Nageswaran
said.
Contd...
Nov 23 - Jan 24
INGENIOUS
6
Samachaar
WIDENING OF INVSTOR BASE
He pointed out that with the bond
inclusion, the investor base will widen
and relieve Indian financial institutions
from being one of the biggest buyers of
government bonds to lend for more pro-
ductive purposes and the private sector.
“…and naturally the financing of
the current account deficit becomes
that much easier because it is by-
and-large believed that these inves-
tors are long term and patient in-
vestors and they are not fickle or
hot-money flows. So these are all
the advantages that we all know
about,” he said.
CHALLENGES
The CEA, however, noted
that there will be challenges in
terms of the rise in sensitivity of
domestic policy to external spillo-
vers. For which, he said, fiscal and mone-
tary priorities will need to be cognisant of
global perceptions and “macro-prudential
policies will become critical down the
road”. “We need to keep an eye on what
foreign investors would be thinking, what
will happen to bond yields, currency, etc.
and sometimes, during globally uncertain
times, unrelated to Indian macro-
fundamentals, there could be volatility in
the Indian bond market or in the currency
because of the inclusion or holding of
Indian G-secs by foreigners. That is
something we need to be prepared for and
prepare ourselves and also think about
accordingly. Therefore fiscal and mone-
tary policies need to be cognisant of the
global perceptions,” Nageswaran said.
RBI WITH OTHER INDEX PROVID-
ERS
The Reserve Bank of India (RBI)
has been engaging with other index pro-
viders, including FTSE Russel and
Bloomberg-Barclays, for the inclusion of
IGBs in global bond indices. Post the
inclusion into JP Morgan EM Bond In-
dex, India’s chances of inclusion into
Bloomberg Global Aggregate Index also
rises, IDFC First Bank said in a note. “In
case India is included in the Bloomberg
Global Aggregate Index, it could result in
inflows of $15 billion to $ 20 billion with
India’s weight ranging from 0.6 per cent
to 0.8 per cent,” it said.
The news of inclusion helped the yield on
the 10-year government bond – 7.26 per
cent – 2033, ease. It opened at 7.08 per
cent but ended at 7.18 per cent on profit
booking and in anticipation that the RBI
will not purchase government bonds
through open market operations (OMOs)
given the higher flow of funds. The rupee
also closed 16 paise down at 82.94 on
Friday, compared to previous closing of
83.09.
FPIs( foreign portfolio investors)
have turned net buyers of the domestic
bonds on hope India will be included in
global bond indices, improving growth
prospects, lower inflation compared to
other economies and stable rupee.
Overseas investors have been net
buyers of domestic debt for all the nine
months (till September 21) of 2023 ex-
cept in March when they had net sold Rs
2,505 crore of bonds. In the calendar year
2022, FPIs had net sold Rs 15,911 crore
of Indian debt, according to the National
Securities Depository Ltd (NSDL) data.
Source: https://indianexpress.com/article/
business/economy/jp-morgan-india-emerging-
markets-bond-index-8951000/
WHAT IS THE IMPACT ON BOND
YIELDS, BORROWING COSTS?
India's fiscal deficit remains
high at a targeted 5.9% of GDP for
the year ending March 31, 2024,
which will result in the government
borrowing a record 15 trillion ru-
pees (about $181 billion).
So far, banks, insurance
companies and mutual funds have
been the largest buyers of govern-
ment debt. An additional source of
funds will help cap bond yields and
the government's borrowing costs.
Traders estimate the bench-
mark bond yield will fall 10-15
basis points to 7% over the next few
months.
Corporate borrowers will also
benefit as their borrowing costs are
benchmarked to government bonds.
However, increased foreign flows
will also make the bond and currency
markets more volatile and could push the
government and central bank to intervene
more actively.
WHAT DOES IT MEAN FOR THE
RUPEE?
Larger debt inflows from next
financial year will make it easier for India
to finance its current account deficit and
reduce the pressure on the rupee.
Index inclusion-related inflows of
close to $24 billion will cover a material
part of India's $81 billion current account
deficit, estimated for next financial by
IDFC First Bank.($1 = 82.8510 Indian
rupees)
Explainer: What India's inclusion in JPMor-
gan's bond index means for its markets | Reu-
ters
Nov 23 - Jan 24
INGENIOUS
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Ingenious Nov 2023 to Jan 2024.pdf

  • 1. 1 Issue: 7 In-house magazine of FCFP members Nov 2023 - Jan 2024
  • 2. 2 Issue: 7 In-house magazine of FCFP members Nov 2023 - Jan 2024 THE PROGRESSION PLAY BY THE RULES & BE REWARDED RETIREMENT SCIENCE SEC 10(10D) INGENIOUS SAMACHAAR INDIA ON MOON
  • 3. 3 Content Page Ingenious Samachaar 4 The Progression - Play by the Rules & be Rewarded 7 Did you know? 10 Cer ficate Courses from Go-past 11 Meet the par cipants 12 Ar cle - Know more on Income Tax sec on 10(10D) 15 Cover Story - INDIA on MOON - CHANDRAYAAN 19 Meet the AWF Qualifiers 17 Ar cle - Re rement Science (Part-1) 21 CBDT Circular 28 Tes monial by Par cipants 25 Ar cle - Achieving Financial Freedom 24 Data Centre 27 Dear Readers, Congratulating the readers, FCFP participants and the Gopast team for our 1st Anniversary issue of our in-house Ingenious magazine. We are pleased to present our 1st Anniversary Issue - 7th quarterly “Ingenious Magazine” for November 23 to January 24 by the alumni of Foundation Course in Financial Planning (FCFP) 1st & 2nd Batch from Gopast Centre for Learning Pvt. Ltd., under the able guidance of our Guru Shri Gopinath Radhakrishnan Sir. It compris- es of write ups on financial products and latest news articles related to economy, finance and insurance industry based on our research. We are thankful, grateful and blessed for your support till date and wish the same support from you all ahead too. Wish you a happy reading. Thanking you & Regards, On behalf of the Organizing committee of Alumni FCFP 2022 Nov 23 - Jan 24 INGENIOUS
  • 4. 4 Samachaar What is G20? G20 means - The Group of Twen- ty is an international forum for govern- ment leaders and central bank governors from 19 indi- vidual countries and the Europe- an Union (EU). It was estab- lished in 1999 in response to the financial crises of the late 1990s, with the primary aim of fostering inter- national economic cooperation and global financial stability. The G20 is composed of most of the world's largest economies' finance ministries, including both indus- trialized and developing countries; it ac- counts for around 80% of gross world product (GWP), 75% of international trade, two-thirds of the global popula- tion, and 60% of the world's land area. The G20 has since become one of the most prominent and influential forums for addressing global economic and fi- nancial issues. Who are the members of G20? The G20 consists of 19 individual member countries, which are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States. The European Union is also represented, mak- ing it a total of 20 members. What is the purpose of G20? The G20 Summit is held annually, under the leadership of a rotating Presi- dency. The G20 initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to inter- alia include trade, sustainable develop- ment, health, agriculture, energy, envi- ronment, climate change, and anti- corruption. How does G20 work? The G20 Presidency steers the G20 agenda for one year and hosts the Summit. The G20 consists of two parallel tracks: The Finance Track and the Sherpa Track. The G20 process from the Sherpa side is coordinated by the Sherpas of member countries, who are personal em- issaries of the Leaders. Finance Track is led by Finance Ministers and Central Bank Governors of the member coun- tries. The Fi- nance Track is mainly led by the Ministry of Finance. These working groups meet regularly throughout the term of each Presidency. The Sherpas oversee negotiations over the course of the year, discussing agenda items for the Summit and coordi- nating the substantive work of the G20. In addition, there are Engagement Groups which bring together civil societies, par- liamentarians, think tanks, women, youth, labour, businesses and researchers of the G20 countries. Who are the leaders of G20? The G20 does not have a perma- nent secretariat or president. The country that holds the presidency rotates annual- ly. The presidency is responsible for set- ting the agenda, organizing meetings, and representing the G20 on the international stage. About G20 Summit 2023 The year 2023 is memorable for our India as the 18th G20 Summit was held in New Delhi on the 09th and 10th of September 2023 at Bharat Mandapam International Exhibition-Convention Cen- tre (IECC). Our Motto/ theme - Vasudhaiva Kutumbakam meaning One Earth, One Family, One Future is rooted in ancient Sanskrit texts and the goal of sustainable development. The G20 New Delhi Summit was chaired by the Indian Prime Minister, Narendra Modi. Contd... India hosts G20 Bharathi Srinivasan The finance ministry has wel- comed the inclusion of Indian govern- ment bonds into JPMorgan’s indices, saying it is reflective of the confidence in the economy. DISCUSSIONS SINCE 2013 Talk of India entering into discus- sions to become a part of global bond indices had emerged in mid-2013 even as the economy battled the 'taper tan- trums' that sank the Indian rupee to its (then) all-time low in late August. The country needed investors to be confident about its long-term growth prospects so that funds could flow in, bolster the cur- rency, fill up the foreign exchange cof- fers, and stop the financial market melt- down amid eye-wateringly high infla- tion. It was in these circumstances that newly-appointed Reserve Bank of India (RBI) governor Raghuram Rajan had said in his first post-monetary policy press conference that India had several issues to discuss with the "bond index people". We will explore and see, based on what their conditions are," Rajan had said on September 20, 2013. It is safe to say the talks have been long — for almost 10 years after Rajan's comments, in the early hours of September 22, JPMorgan announced India's inclusion in its Government Bond Index-Emerging Markets (GBI-EM) global index suite with effect from June 2024. Contd... India to sell 50 yr BONDS Globally Geeta Mohan P. Nov 23 - Jan 24 INGENIOUS
  • 5. 5 Samachaar Contd... India's presidency began on 1 De- cember 2022, leading up to the summit in the third quarter of 2023. The presidency handover ceremony was held, in which the G20 Presidency gavel was transferred from Indonesian President Joko Widodo to Indian Prime Minister Modi at the close of the Bali summit. Indonesia held the presidency in 2022. Indian Prime Minister Modi formally handed over the G20 presidency to Luiz Inácio Lula da Silva, the President of Brazil. India will continue to hold the position until 30 November 2023. What are the Features of G20 Summit 2023? G20 India has put forth six agenda priorities for the G20 dialogue in 2023: 1. Green Development, Climate Fi- nance & LiFE 2. Accelerated, Inclusive & Resilient Growth 3. Accelerating progress on SDGs 4. Technological Transformation & Digital Public Infrastructure 5. Multilateral Institutions for the 21st century 6. Women-led development What is the Outcome of the G20 Summit 2023? At the Summit, India was able to leverage its economic significance to garner support from all G20 member nations for a Leaders’ Declaration recognizing the con- flict in Ukraine without specifying any ag- gressor. Modi, who chaired the Summit, also advocated for reforming global institu- tions like the United Nations Security Council (UNSC) to align with the changing world dynamics, which received backing from the United States. The timing of the G20 Summit was also opportune, following India’s successful moon landing under the Chandrayaan-3 program. For more details on G20, you can visit their official website - https://www.g20.org/en/ Contd… In April 2020, the Reserve Bank of India introduced a clutch of securities that were exempt from any foreign in- vestment restrictions under a "fully ac- cessible route" (FAR), making them eligible for inclusion in global indexes. Currently, 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion are index eligible, JPMorgan said. About 73% of benchmarked in- vestors voted in favour of India's inclu- sion, it said. INDIA NOT DESPERATE "People would like to believe that India is desperate (to get listed on global bond indices), but we are not," a senior finance ministry official had told Moneycontrol in August 2022 The lack of desperation from India's side had a lot to do with the economy's recovery following the may- hem caused by the taper tantrums. The best indicator here is the country's for- eign exchange reserves, which hit an all -time high of $642 billion in September 2021 — a far cry from the dwindling $274 billion at the time Rajan took charge as RBI governor in September 2013. Policymakers had also warned in recent months about the risks from be- ing listed on these indices, chief among them being increased sensitivity of do- mestic policy to external factors, and the need for domestic fiscal and monetary policy to be more aware of global per- ception and sensitivities https://www.moneycontrol.com/news/ business/economy/a-decade-in-the-making- indias-global- bond-index-inclusion-journey -finally The decision is the latest sign of India’s growing appeal to international investors as the country’s economic growth outstrips peers, its geopolitical influence grows and global companies including Apple Inc. look for alterna- tives to China. While foreigners play a small role in the Indian bond market, inflows have been picking up in recent years and the country’s assets have proven resilient to financial turbulence that has roiled other developing-nations. Read more at: https://economictimes.indiatimes.com/ markets/bonds/jpmorgan-is-adding-india-to- its-emerging-markets-bond-index/ articleshow/103850612.cms? utm_source=contentofinterest&utm_medium =text&utm_campaign=cppst JP Morgan Chase & Co. Has announced it will include Indian government bonds to its emerg- ing markets bond index from June 2024, a much-anticipated move which could attract more foreign flows into the do- mestic government securities market. The move can potentially attract about $25 billion into the country, as per ana- lyst estimates. India, which will be included in the GBI-EM Global index suite starting June 28, 2024, is expected to reach the maximum weight of 10 per cent in the GBI-EM Global Diversified Index (GBI -EM GD), JP Morgan said. Currently, 23 Indian government bonds with a combined notional value of $330 billion are index eligible. Inclusion of the bonds will be staggered over 10 months through March 31, 2025 (i.e., inclusion of 1 per cent weight per month), it said. “… this could prompt overall ~$26 bil- lion of passive inflows as a one-off stock adjustment over the scale-in peri- od, while actual flows may be higher, depending on market dynamics,” said Madhavi Arora, Lead Economist, Emkay Global Financial Services. A Goldman Sachs report said the move could prompt passive inflows of around $30 billion (comprising emerging mar- ket local dedicated funds, as well as blended funds) over the scale-in period as a one-off stock adjustment. However, given India’s attrac- tiveness from a yield and (low) volume perspective, it could attract at least an- other $10 billion of active flows. “So in total, we think India’s fixed income markets could see inflows upwards of $40 billion over the next one and a half years (where the phase-in period will be completed by March 2025),” the Gold- man Sachs report said. It said as several emerging markets dedicated funds are already set up on India, the flows will be front-loaded, beginning immediately, as investors pre-position for inclusion next year. CURRENCY APPRECIATION Naturally, there will be a tenden- cy for the currency to appreciate just as it happened between 2003 and 2008 and capital inflows into India surged. There- fore, when there is a demand for inves- tors to buy Indian government bonds denominated in rupees then naturally the demand for rupees will increase and everything else being equal, it will lead to a potential for rupee’s nominal appre- ciation. So that is both a positive and a challenge because we have to make sure that the rupee stays competitive as well. In that sense, there is a potential for currency appreciation when the index inclusion starts to happen and the de- mand from investors for Indian govern- ment securities starts to rise,” Chief Economic Advisor in the Union Minis- try of Finance V Anantha Nageswaran said. Contd... Nov 23 - Jan 24 INGENIOUS
  • 6. 6 Samachaar WIDENING OF INVSTOR BASE He pointed out that with the bond inclusion, the investor base will widen and relieve Indian financial institutions from being one of the biggest buyers of government bonds to lend for more pro- ductive purposes and the private sector. “…and naturally the financing of the current account deficit becomes that much easier because it is by- and-large believed that these inves- tors are long term and patient in- vestors and they are not fickle or hot-money flows. So these are all the advantages that we all know about,” he said. CHALLENGES The CEA, however, noted that there will be challenges in terms of the rise in sensitivity of domestic policy to external spillo- vers. For which, he said, fiscal and mone- tary priorities will need to be cognisant of global perceptions and “macro-prudential policies will become critical down the road”. “We need to keep an eye on what foreign investors would be thinking, what will happen to bond yields, currency, etc. and sometimes, during globally uncertain times, unrelated to Indian macro- fundamentals, there could be volatility in the Indian bond market or in the currency because of the inclusion or holding of Indian G-secs by foreigners. That is something we need to be prepared for and prepare ourselves and also think about accordingly. Therefore fiscal and mone- tary policies need to be cognisant of the global perceptions,” Nageswaran said. RBI WITH OTHER INDEX PROVID- ERS The Reserve Bank of India (RBI) has been engaging with other index pro- viders, including FTSE Russel and Bloomberg-Barclays, for the inclusion of IGBs in global bond indices. Post the inclusion into JP Morgan EM Bond In- dex, India’s chances of inclusion into Bloomberg Global Aggregate Index also rises, IDFC First Bank said in a note. “In case India is included in the Bloomberg Global Aggregate Index, it could result in inflows of $15 billion to $ 20 billion with India’s weight ranging from 0.6 per cent to 0.8 per cent,” it said. The news of inclusion helped the yield on the 10-year government bond – 7.26 per cent – 2033, ease. It opened at 7.08 per cent but ended at 7.18 per cent on profit booking and in anticipation that the RBI will not purchase government bonds through open market operations (OMOs) given the higher flow of funds. The rupee also closed 16 paise down at 82.94 on Friday, compared to previous closing of 83.09. FPIs( foreign portfolio investors) have turned net buyers of the domestic bonds on hope India will be included in global bond indices, improving growth prospects, lower inflation compared to other economies and stable rupee. Overseas investors have been net buyers of domestic debt for all the nine months (till September 21) of 2023 ex- cept in March when they had net sold Rs 2,505 crore of bonds. In the calendar year 2022, FPIs had net sold Rs 15,911 crore of Indian debt, according to the National Securities Depository Ltd (NSDL) data. Source: https://indianexpress.com/article/ business/economy/jp-morgan-india-emerging- markets-bond-index-8951000/ WHAT IS THE IMPACT ON BOND YIELDS, BORROWING COSTS? India's fiscal deficit remains high at a targeted 5.9% of GDP for the year ending March 31, 2024, which will result in the government borrowing a record 15 trillion ru- pees (about $181 billion). So far, banks, insurance companies and mutual funds have been the largest buyers of govern- ment debt. An additional source of funds will help cap bond yields and the government's borrowing costs. Traders estimate the bench- mark bond yield will fall 10-15 basis points to 7% over the next few months. Corporate borrowers will also benefit as their borrowing costs are benchmarked to government bonds. However, increased foreign flows will also make the bond and currency markets more volatile and could push the government and central bank to intervene more actively. WHAT DOES IT MEAN FOR THE RUPEE? Larger debt inflows from next financial year will make it easier for India to finance its current account deficit and reduce the pressure on the rupee. Index inclusion-related inflows of close to $24 billion will cover a material part of India's $81 billion current account deficit, estimated for next financial by IDFC First Bank.($1 = 82.8510 Indian rupees) Explainer: What India's inclusion in JPMor- gan's bond index means for its markets | Reu- ters Nov 23 - Jan 24 INGENIOUS
  • 7. 7 Commonly ignored printed informa on on Mutual funds documents/fact sheets Risk Factors & Disclaimer Risk Factors 1. 1. Mutual fund investments are subject to market risks, read all scheme related documents carefully. 2. Investment in Mutual Fund Units involves investment risks such as trading volumes, se lement risk, liquidity risk, default risk including the possible loss of principal. 3. As the price / value / interest rate of the securi es in which the scheme(s) invests fluctuates, the value of your investment in the scheme(s) may go up or down depending on the various factors and forces affec ng the capital markets and money markets. 4. There can be no assurance that the schemes objec ves will be achieved. 5. There is no assurance or guarantee to unit holders as to the rate of dividend distribu on nor will that divi dends be paid regularly. 6. Past performance of the Sponsors and their affiliates do not indicate the future performance of the Schemes of the Mutual Fund. 7. The name of the Scheme(s) do not in any manner indi cate either the quality of the Scheme(s) or their future prospects and returns. 8. The Sponsors are not responsible or liable for any loss resul ng from the opera on of the Scheme(s) beyond the ini al contribu on of Rs. ___ each made by them towards se ng up the Fund. 9. Unless specified, the Scheme(s) of this Mutual Fund are not guaranteed or assured return scheme(s). I even doubt if investors (even advisors) ever read this. Investors who respect these factors, profit from their investments and those who ignore, undergo severe losses. Look at these 3 pieces of informa on: 1. Net resources mobilised by Mutual Funds 2. The holding period of investors 3. The average investors returns. Net resources mobilised This is a chart where we have merged two separate graphs into one picture. i) The Sensex index and ii) the Net resources mobilised by Mutual funds in India. Net resources mobilised means the difference between investor funds that came in and investor funds that flowed out in a given year. From this chart one can observe that the investors are chasing the market. When the market is moving up they start buying stocks and towards the peak they buy the maximum and when the market is moving downwards they sell the stocks and as it hits the Nadir, they sell most of their stocks. This is happening repeatedly. The markets data show that if a investor holds on for a long me, then it is most likely that he may gain inspite of the ups and downs en-route. This is what MF advisors tell their prospects and clients. They even show 10 years, 15 years roll- ing returns. Based on such data the investors see themselves trav- elling the path of blue line (whereas they would have to expe- rience the path of red line). They start believing that there is no risk in inves ng of even if there is, it will be a very small or negligible correc on which they can easily tolerate. This makes them over confident. More so that if at the beginning their picks have given them good growth. Then they throw Nov 23 - Jan 24 INGENIOUS … the Progression R. Gopinath Play by the Rules & be Rewarded
  • 8. 8 … the Progression R. Gopinath Play by the Rules & be Rewarded Contd... all cau on to wind and bring in more money, if required by even selling some of their safe assets. Most of the behavioural economists have held that investors behave emo onally in the market even though they enter the market with sound logic, a er making some analy- sis, some studies and se ng goals for their investments. But along the line, they start following the trend and forego the principles of inves ng. Goals take a back seat and minimising losses or marginalising the profits take the front seat. They become so emo onal that they buy assets when they are in rising trend, mostly nearer to the peak and they sell when the assets are falling, mostly a er the mid way in the fall. This way most of the investors loose money in mar- ket. The average investors returns: This is why even though the sta s cs say that markets have given double digit posi ve returns in long runs or the fund managers claim that their funds have given an yield of 12% + but the average investor returns are mere 3%. Cogni ve Dissonance: Investors have pre-exis ng beliefs about the way in- vestment markets work. If the feedback provided by the mar- ket conflicts with the beliefs, then the investor experiences some mental discomfort. This mental discomfort ends up dis- rup ng investor behaviour. This is one of the aspects of cogni- ve dissonance. Many mes, the cogni ve dissonance becomes difficult to handle, and hence investors take hasty decisions. These decisions may not be ra onal or even in their best interest. They are simply taken to achieve cogni ve stability. Holding period of MFs: The investors must be mentally prepared to accept vola lity in markets and share prices. If the market grows at a rate year on year consistently then the investors return will be less than that rate. It is the vola lity that gives them chances to earn a be er rate than what the markets have grown. "During FY 2022-23, 73% of mutual fund units were redeemed within 2 years of investment. Only investments in 3% of the units con nued for more than 5 years," Sebi said in a consulta on paper on review of total expense ra o (TER) charged by asset management companies (AMCs). Read more at: https://economictimes.indiatimes.com/markets/stocks/news/50-mutual-funds- get-redeemedwithin-a-year-is-long-term-investing-dead/ articleshow/100464529.cms How can investors handle these emo onal issues? 1. Expect vola lity; Read and understand the offer docu- ments of the assets and play by the rules. 2. Secure your basic minimum requirements through Risk free growth assets. Even if you become emo onal dur- ing the vola le period there will be a safe back-up, that is likely to be held on ll maturity 3. Target a weighted average yield in a mix of safe, mod- erate risk and aggressive risk assets rather than the best yield. Contd... Nov 23 - Jan 24 INGENIOUS
  • 9. 9 … the Progression R. Gopinath Play by the Rules & be Rewarded Contd… 4. Take advice and help of professional financial planners. The yield shown above are merely hypothe cal. It is only to demonstrate the concept of a balance por olio. The exposure shown in the table is only for illustra ve purpose; the actual break-up should be decided in consulta on with the financial planner according to the goals and the risk tolerance levels of the investor. 4. Let the whole process be guided by drawing a Map of Life and the financial junc ons be marked well. 5. Follow the principles of Financial Pyramid. Nov 23 - Jan 24 INGENIOUS ASSETS EXPO- SURE EXPECTED YIELD NEGATIVE SITUATION POSITIVE SITUATION Min. Max. Risk Free Growth 60% 5.00% 6.00% 3.00% 3.60% Moderate Risk 30% 3.00% 8.00% 0.90% 2.40% Aggressive Risk 10% 1.00% 20.00% 0.10% 2.00% Por olio 100% 4.00% 8.00% Weighted Average
  • 10. 10 BINDRA Inderpal Singh Compulsory Personal Accident (CPA) Insurance of Owner Driver IRDAI (under the direc ons of the court) has mandated CPA insurance for owner-driver of all vehicles (incl 2W). The CPA insurance provides max S.I. of Rs.15.00 Lacs covering the owner-driver having a valid driving license. The person having mul ple vehicles in his/her name does not need to take CPA in all vehicles. He can take same in any one vehicle. This means having CPA in mul ple vehicle will not pay for mul ple claims. The CPA pays for the accidental death and disability only if the insured person is driving or si ng in any of the vehicles owned by him/her, and His/her driving license is valid at the me of accident. This CPA will not pay if the insured person meets with accident in any other vehicle or accident is caused by any other event or peril. “ Achievers accept challenges beyond their capacity and strive to increase capacity to meet the challenges. That way, they keep growing forever. -rg
  • 11. 11 Topics Covered in the FCFP Course 1. The Client's needs 2. The fact finding process 3. Good prac ce 4. Protec on products 5. Savings and Investment products 6. Pension products Topics Covered in the QPFPA Course 1. Personal Taxa on 2. Risk Management 3. Mathema cs of Finance 4. Analy cal Ra os for Family Economics & SME Economics Topics Covered in the MCAFP Course 1. Behavioral Finance 2. The Art and the Science of drawing the Map of Life. 3. Quotes of great Philosophers and experts in the spectrum of eco- nomics and finance PROFESSIONAL COURSES FROM GOPAST
  • 12. 12 From top, le to right (in alphabe cal order) Ankur Shah, Ajay Kumar Tyagi, Amit Sarang, Anand Garg, Arumugasamy K, Arun Paul, Ashok Gulabrav Sutar, Atul Jain, Balachandran S, Balvir Singh Bais, Bharathi Srinivasan, Brundaban Panda GOPAST PARTICIPANTS OF FCFP, QPFPA & MCAFP
  • 13. 13 From top, le to right (in alphabe cal order) Dwarakanath J, Geeta Mohan. P, Hariram D. Purohit, Hemant Kumar Agarwalla, Inderpal Singh Bindra, Jawahar Lal Sukhwal, K M S Sri Ram, K Sohan Raju, Kamalesh Mukherjee, Keshav Hemant Agarwala, M Satyanarayan, GOPAST PARTICIPANTS OF FCFP, QPFPA & MCAFP
  • 14. 14 From top, le to right (in alphabe cal order) Nayan Bhowmick, Rajesh Kumar, Rochak Puri, Savita Harsh Pillai, Suresh Kumar Arora, Tapogopal Moitra, Umesh Panchwagh, Vinay Joshi, Vinod Kumar Jaiswal GOPAST PARTICIPANTS OF FCFP, QPFPA & MCAFP
  • 15. 15 Sec on 10 (10D) of the Income Tax Act 1961 is an im- portant provision that deals with the taxa on of life insurance policies. This sec on was introduced in the Fi- nance Act 2003 and has undergone several amendments since then. The main objec ve of Sec on 10 (10D) is to provide tax benefits to policyholders who purchase life insurance policies. According to this sec on, the proceeds of a life in- surance policy are exempt from tax if certain condi ons are met. Let us look at the exis ng provisions for be er under- standing of the changes made in Finance Act,2023 a) The Finance Act, 2003 introduced a limit on the pre- mium payable for any year during the term of the policy. Where the premium exceeds 20% of the Sum Insured in any year, no exemp on will be granted for the sum received under such insurance policy. b) The Finance Act, 2012 further reduced the threshold limit on the premium payable to 10% of Sum Insured for policies issued on or a er 01-04-2012. c) The Finance Act, 2021 introduced a monetary cap on the premium payable in respect of unit-linked insur- ance policies (ULIPs), disallowing exemp on if the premium payable for any year during the term policy exceeds Rs.2,50,000 (on policies issued on or a er 01.02.2021). A er the Finance Act, 2021, both the monetary and percentage caps apply to ULIPs. Further, in the Finance Act, 2021, ULIPs were included in the defini on of a Capital As- set, clarifying that income from ULIPs shall be taxable under the head Capital Gains. The Finance Act, 2023 The Central Board of Direct Taxes (CBDT) via a circular issued on August 16 no fied new guidelines under clause (10D) of sec on 10 of the Income-Tax Act, 1961. It said that clause (10D) of sec on 10 of the IT Act provides for income-tax exemp on on any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy subject to certain exclusions. i) with effect from the assessment year 2024-25, the sum received under a life insurance policy, other than a unit-linked insurance policy, issued on or a er the first day of April 2023, shall not be exempt under the said clause if the amount of premium payable for any of the previous years during the term of such policy exceeds Rs 5,00,000 [sixth proviso]; ii) if a premium is payable for more than one life insur- ance policy, other than a unit-linked insurance policy, issued on or a er 01.04.2023, the exemp on under the said clause shall be available only with respect to such policies where the aggregate premium does not exceed Rs 5,00,000 for any of the previous years dur- ing the term of any of those policies [seventh provi- so]; iii) the sixth and seventh provisos shall not apply in case of any sum received on the death of a person [eighth proviso] Further, it is provided that any amount received un- der life insurance policies (other than ULIPs) shall be taxable under the head of other sources if not exempt under Sec on 10(10D). The following provisions have been inserted in this respect: a) Sum received under life insurance policies shall be treated as income [sub-clause (xviid) of Sec on 2 (24)]. b) The income from life insurance policies (other than ULIPs) shall be taxable under the head of other sources if not exempt under sec on 10(10D) [clause (xiii) of Sec on 56(2)]. c) Sum received under life insurance policies, in excess of the aggregate of premium paid during the term of policy, shall be treated as income under the head of Other Sources. The rules shall also be prescribed for the computa on of such income [clause (xiii) of Sec- on 56(2)]. KEY POINTS TO REMEMBER 1. Premium payable shall be exclusive of the amount of GST payable on such premium. 2. ULIP policies sold on or a er 01.02.2021, whose pre- mium are above 2,50,000/- or 10% of Sum Insured were not eligible for exemp on u/s 10(10D) 3. Policies (other than ULIP) policies, issued on or a er 01.04.2023, with annual premium above Rs. 5,00,000/- in any previous year were not eligible for exemp on u/s 10(10D) 4. Policies (other than ULIP) policies, issued on or a er 01.04.2023, with annual premium of more than 10% of Sum Insured in any previous year were also not eligible for exemp on u/s 10(10D) 5. Any amount received as Death claim is exempt from Income Tax under Sec 10(10D) Contd... Nov 23 - Jan 24 INGENIOUS Hemant Agarwala Assam
  • 16. 16 Contd... 6. Income from ULIP policies are taxed as Capital Gain {other than exempted under Sec on 10(10D)} 7. Income from policies other than ULIP were charged under the Head Income from Other Sources {other than exempted under Sec on 10(10D)} 8. Sum received in excess of aggregate of premium paid shall be treated as Income. 9. In case of mul ple policies (more than one policy), policyholder can decide to select policies for exemp- on to be taken to have maximum benefit from the income tax. Let us understand with the help of few example: The assessee has the following policies all of which sa sfy all the condi on laid down in clause (10D) of Sec on 10 of the Act. The assessee did not receive any considera on under any other eligible life insurance policy in earlier previous years preceding the previous year 2035-36 other than under life insurance policies “X” and “Y”: Taxability as per the Seventh proviso to clause (10D) of Sec on 10 of the Act: The Surrender value of Life insurance policy “X” and considera on received under Life insurance policy “Y” on maturity will be exempt under Clause (10D) of Sec on 10 of the Act since the annual premium does not exceed Rs. 5,00,000/- during the term of these pol- icies. The considera on received under Life insurance policy “A”, “B” and “C” will be taxable under clause (10D) of Sec on 10 of the Act as per the provisions of seventh proviso to the said clause (10D) since aggre- gate of the annual premium payable for life insurance policies “X” and “Y” for the previous year 2023 24 to 2033 34 was Rs. 4,00,000/-. If the annual premium of the life insurance policy “A” or “B” or “C” is added then the aggregate of the premium will exceed Rs. 5,00,000 for the previous year 2024-25 to 2033-34. However the assessee has the op on not to take benefit of tax exemp on for Policy “X” and instead opt for exemp on for Policy “B” and get more tax benefit. For example; Let us determine whether the exemp- on is available under Sec on 10(10D) for a single policy purchased by four different persons in the following scenari- os. For example, Let us determine whether the exemp on is available under Sec on 10(10D) for mul ple policies pur- chased by one person on or a er 01-04-2023 in the follow- ing scenarios. Overview of Tax on Various Life Insurance Policies ***** Life Ins Policy X Y A B C Date of Issue 01-Apr -2023 01-Apr -2023 01-Apr -2024 01-Apr -2024 01-Apr -2024 Annual Premium Rs 2.00 Lacs 2.00 Lacs 2.00 Lacs 3.00 Lacs 6.00 Lacs Sum Assured 20.00 Lacs 20.00 Lacs 20.00 Lacs 30.00 Lacs 60.00 Lacs Amount received as surrender on 01-Jul-2033 12.00 Lacs Amount received as maturity on 01-Nov-2034 24.00 Lacs Amount received as maturity on 01-Nov-2035 24.00 Lacs 36.00 Lacs 70.00 Lacs Par culars Mr. A Mr. B Mr. C Mr. D Date of Invest- ment 31-Jan- 2023 15-Apr- 2023 21-May- 2023 31-Jul- 2023 Premium (Yearly) 3.40 Lacs 4.00 Lacs 6,30 Lacs 8.00 Lacs Sum Assured 50.00 Lacs 45.00 Lacs 70.00 Lacs 70.00 Lacs Whether Premi- um exceeds 10% of Sum Assured No No No Yes Whether premi- um exceeds 5,00,000/- N.A. No Yes Yes Whether exemp- on available u/s Sec 10(10D) Yes Yes No No Par cu- lars Premium Yearly (in lakhs) Sum Assured (in lakhs) Whether premium exceeds 10% of SA Whether premium exceeds 5 lakh yearly Whether eligible for ex- emp on u/s 10 (10D) Policy 1 5.50 55.00 No Yes No Policy 2 3.00 20.00 Yes No No Policy 3 4.25 40.00 Yes No No Policy 4 7.00 80.00 No Yes No Policy 5 4.00 80.00 No No Yes Policy 6 4.90 60.00 No No Yes Policy 7 0.55 10.00 No No Yes Policy 8 0.45 9.00 No No Yes PARTICU- TERM ENDOWMENT ULIPS Deduc on u/ s 80C Upto 10% of S.A Upto 10% of S.A Upto 10% of S.A Exemp on u/ s 10(10D) Exempt Exempt if pre- mium does not exceeds 10% of S.A and 5,00,000/- Exempt if pre- mium does not exceeds 10% of S.A and 2,50,000/- Relevant Head of In- come Not Taxable Other Sources Capital Gains Tax Rate Not Taxable Normal Slab Rate Long Term 10% Nov 23 - Jan 24 INGENIOUS
  • 17. 17 Nov 23 - Jan 24 INGENIOUS Ankur SHAH Bharathi SRINIVASAN Ajay Kumar TYAGI Ashok G SUTTAR Suresh Kumar ARORA Keshav H AGARWALLA Amit Uttam SARANG Inderpal S. BINDRA Umesh PANCHWAG
  • 18. 18 Nov 23 - Jan 24 INGENIOUS Savita PILLAI Nishith JOSHI Dwarakanath JAGANATHAN Vikas ARORA Anand GARG K. ARUMUGASAMY Hemant Kumar AGRAWALLA M. SATYANARAYAN Tapogopal MOITRA
  • 19. 19 C handrayaan-3 is the third mission in the Chandrayaan programme, a series of lunar- explora on missions devel- oped by the Indian Space Research Or- ganisa on (ISRO). Launched on 14 July 2023, the mission consists of a lunar lander named Vikram and a lunar rover named Pragyan, similar to those launched aboard Chandrayaan-2 in 2019. Chandrayaan-3 was launched from Sa sh Dhawan Space Centre on 14 July 2023. The spacecra entered lunar orbit on 5 August, and the lander touched down near the Lunar south pole on 23 August at 18:03 IST (12:33 UTC), making India the fourth country to successfully land on the Moon, and the first to do so near the lunar south pole. On 3 September the lander hopped and reposi oned itself 30–40 cm (12–16 in) from its landing site. A er the comple on of its mission ob- jec ves, it was hoped that the lander and rover would revive for extra tasks, on 22 September 2023, but missed the wake-up call. On September 30, the second lunar night began, elimina ng hopes of revival. Objec ves: ISRO's mission ob- jec ves for the Chandrayaan-3 mission are: 1. Engineering and implemen ng a lander to land safely and so ly on the surface of the Moon. 2. Observing and demonstra ng the rover's driving capabili es on the Moon. 3. Conduc ng and observing exper- iments on the materials availa- ble on the lunar surface to be er understand the composi- on of the Moon. Spacecra Design: Chandrayaan -3 comprises three main components: a propul- sion module, lander, and rover. Chandrayaan-3 Encapsulat- ed Within LVM3's Payload Fairing (right) Chandrayaan-3 integrated components (below) Launch: Chandrayaan-3 was launched aboard an LVM3-M4 rocket on 14 July 2023, at 09:05 UTC from Sa sh Dhawan Space Centre Second Launch Pad in Sriharikota, Andhra Pra- desh, India, entering an Earth parking orbit with a perigee of 170 km (106 mi) and an apogee of 36,500 km (22,680 mi). Orbit: A er a series of Earth bound manoeuvres that placed Chan- drayaan-3 in a trans-lunar injec on orbit, ISRO performed a lunar-orbit inser on (LOI) on 5 August, successfully placing the Chandrayaan-3 spacecra into an orbit around the Moon. The LOI opera on was carried out from the ISRO Telemetry, Tracking, and Com- mand Network (ISTRAC) in Bengaluru. On 17 August, the Vikram lander separated from the propulsion module to begin the last phase of the mission. Landing: On 23 August 2023, as the lander approached the low point of its orbit, its four engines fired as a brak- ing manoeuvre at 30 kilometres (19 mi) above the Moon's surface. A er 11.5 minutes, the lander was 7.2 km (4.5 miles) above the surface; it maintained this al tude for about 10 seconds, then stabilized itself using eight smaller thrusters and rotated from a horizontal to a ver cal posi on while con nuing its descent. It then used two of its four en- gines to slow its descent to roughly 150 metres (490 ); it hovered there for about 30 seconds and located an op - mal landing spot before con nuing downward and touching down at 12:33 UTC. Mission Life: · Propulsion module: Carries lander and rover to 100-by-100- kilometre (62 mi × 62 mi) orbit, with opera on of experimental payload for up to six months. · Lander module: one lunar day- light period (14 Earth days). · Rover module: one lunar day- light period (14 Earth days) C S Savita Pillai Nov 23 - Jan 24 INGENIOUS CHANDRAYAAN
  • 20. 20 Funding: In December 2019, ISRO requested the ini- al funding of the project, amoun ng to ₹75 crore (US$9.4 million), out of which ₹600 million (US$7.5 million) would be for mee ng expenditure towards machinery, equipment, and other capital expenditure, while the remaining ₹150 million (US$1.9 million) was sought for opera ng expendi- ture. Amit Sharma, CEO of an ISRO vendor, said, "With local sourcing of equipment and design elements, we are able to reduce the price considerably." Confirming the existence of the project, ISRO's for- mer chairman K. Sivan stated that the es mated cost would be around ₹615 crore (equivalent to ₹724 crore or US$91 million in 2023). Results: The Associated Press, while commen ng on the success of the mission, said, "The successful mission showcases India's rising standing as a technology and space powerhouse and dovetails with Prime Minister Narendra Modi's desire to project an image of an ascendant country asser ng its place among the global elite." Domes c Reac ons: · Chandrayaan-3's landing live stream on ISRO's official YouTube channel received eight million concurrent viewers, which is the highest in YouTube's history. · Congratula ng the ISRO team behind the successful Chandrayaan-3 mission at ISRO Telemetry, Tracking and Command Network in Bengaluru, Prime Minister Narendra Modi announced that the touchdown point of the Vikram lander would henceforth be known as Shiv Shak point. He further declared 23 August, the day the Vikram lander landed on the Moon, as Na- onal Space Day. · ISRO chief S. Somanath exclaimed "India is on the Moon" a er the successful touchdown. "We learnt a lot from our failure and corrected it. It's now 14 days of work and we have to conduct experiments," he told India Today. · P Veeramuthuvel, the Project Director of the mission said, "It's a great moment of happiness. On behalf of the team it gives me immense sa sfac on on achiev- ing this goal as the Project Director of the mission. The en re mission opera ons right from launch ll landing happened flawlessly as per the meline". S. Mohana Kumar, the Mission Director, said that Chan- drayaan-3 was a "team effort". Interna onal Reac ons: · Josef Aschbacher, Director General of European Space Agency, said: "Incredible! Congratula ons to ISRO, Chandrayaan-3, and to all the people of India!! What a way to demonstrate new technologies AND achieve India's first so landing on another celes al body. Well done, I am thoroughly impressed." · NASA Administrator Bill Nelson tweeted: "Congratula ons ISRO on your successful Chan- drayaan-3 lunar South Pole landing and congratula- ons to India on being the 4th country to successfully so -land a spacecra on the Moon. We’re glad to be your partner on this mission". · Cyril Ramaphosa, the President of South Africa said: "This for us, as the BRICS family, is a momentous oc- casion and we rejoice with you. We join you in the joy of this great achievement. Artwork By Our Guru Shri Gopinath Radhakrishnan Sir Passion feeds crea vity. It makes the person create resources needed for its mission. If passion is lacking, even with huge resources he will feel helpless. - rg Reference Link: h ps://en.wikipedia.org/wiki/Chandrayaan-3#Design Nov 23 - Jan 24 INGENIOUS ISRO TEAM ISRO chairman S. Somanath Mission Director S. Mohanakumar Associate Mission Director G. Narayanan Project Director P. Veeramuthuvel Associate Project Director Kalpana Kalahas Vehicle Director Biju C.
  • 21. 21 Re rement Need Not Be An Exit It Can Be An Entry Also. Let us understand the above phrase in two parts. In this magazine issue I have covered the 1st part. The Cycle of Life has many phas- es. Our roles and responsibili es change with every phase and so does the need of income and how it is derived from. Below is the explana on of each phase. Three Major phases of life. Phase 1: As you can see in phase 1 a person acquires earning power by way of educa on or developing skills like sports, singing, ac ng etc. (For Ex- ample CA, Doctor, Architect, Cricketer, Singer, Actor). In this phase one needs the financial support of the parents. Phase 2: Once the person grows up & acquires earning power, they use that earning power to generate income. Also, from that income one starts cre- a ng assets by savings & investment. These assets gradually grow higher. Here your role is of suppor ng your family. Phase 3: Here the income from occupa on stops but s ll requirement of regular income is there. Here we liq- uidate the assets acquired in phase 2 to convert in to income. In phase 3 one may re re in giving mode or taking mode. You would have observed that the roles and responsibili es undergo changes as we pass through these three phases. In phase 2 and phase 3 regular income plays a vital role in fulfilling the responsibili es pertaining to that phase. When we come across pictures of re rement, we see people relaxing in a chair. But is that what elderly couple or elderly person needs. Let’s see what they need. As shown in the above picture major needs of an elderly couple or an elderly person are 1. They would like to be agile and moving around. (Healthy and mobile). 2. They would like to engage them- selves with some ac vity/hobby to use their me. 3. They would like to enjoy autono- my in deciding ma ers related to them. 4. They want to feel secured and cared for. 5. They want to be respected and listened to. One of the primary resources that can provide most of the above is a regular monthly income. As we can see regular monthly income is very important when it comes to re rement. Lets understand how income is generated. Income is generat- ed from two sources. 1. Assets 2. Occupa on Assets Two objec ves of buying/crea ng assets 1. Growth in value (for a lump sum cash) 2. Income (at regular/irregular in- tervals like in the form of rent/ interest/dividend) Any assets can be classified into the following categories as shown in picture. Contd... Nov 23 - Jan 24 INGENIOUS Part-1
  • 22. 22 How does a person generate income from any occupa on? The be- low picture explains well. Alloca on of body, mind and me is required to generate the occu- pa onal income. In the 3rd phase of life, it is mostly likely that the body and mind func oning shows big varia on with what it used to be in 30s and 40s. Therefore, to depend on these to pro- duce occupa onal income in phase 3 can be risky. We will further understand this more by below image. Blue Line: In the figure above, blue line represents metaphysical strength of a person. You can see from the picture that meta physical strength is very low when a child is born and gradually as child grows to boy to youth to father of youth his meta physical strength grows and reaches its peak. Again, as the person grows old his meta physical strength reduces. Thus, in the phase 3 of life we may not have the same physical strength to generate occupa onal income. Green Line: In the figure above, green line represents personal econo- my of a person as he passes through different phases of his life. Personal economy below red line is a nega ve economy. We can say a person is in taking mode if his economy is nega ve and below red line. We can say a per- son is in taking mode if his personal economy is posi ve and above red line. When a child is born his econo- my is nega ve and it goes further more nega ve as he goes to school and col- lege. We will call this period phase 1 of taking mode. As the person finishes his educa on and starts earning his econo- my becomes posi ve. As long as his personal economy stays posi ve, we will tell him to be in giving mode. Now again a er re rement by age or a forced re rement by health personal economy becomes nega ve. We will say it as phase 2 of taking mode. When the economy is nega ve there is one giver and one taker. Now I will ask you to imagine who can be giv- er in phase 1 of taking mode? Probably parents. Who can be giver in phase 2 of taking mode? Probably son or daughter or society. Now phase one and phase 2 both are taking mode. Imagine what can be the difference in the feelings of giver in these 2 phases of taking modes? And what can be the differ- ence in the feelings of taker in these 2 phases of taking modes? Yes, you thought right we should aim to re re in giving mode. And to do that we will require adequate regular monthly in- come. By this me, you must have un- derstood that regular monthly income is very much important when it comes to re rement. And we cannot rely on occupa on to keep producing income in phase 3 of life. So, let’s understand different types of income. As shown in the above chart there are 4 types of income. Amount of body, mind & me u lized to produce each type of income is different and there is also an age limit up to which we can produce the same. Let’s under- stand each type of income. Ac ve Income: Ac ve income is produced by salary, professional fees, business profits etc. Here we need to fully u lize our body, mind & me. So, there is a limit up to what age we can keep doing this. Maximum up to age 60 to 65. Some mes because of health issues it could be even earlier we are forced to stop producing ac ve income. So, we cannot depend on ac ve income to keep con nue a er certain age like 60 to 65. Semi Ac ve Income: Rents, In- terests on lending etc. are example of semi ac ve income. Here we need to par ally use body, mind & me but again like ac ve income we cannot de- pend on it beyond age 65 to 70 to keep producing the same. Passive Income but Not Guaran- teed: Dividends and bank interests are the examples of passive but not guar- anteed income. Here we do not need to u lize our body, mind & me to pro- duce the income. But since the income is not guaranteed and a er ac ve in- come stops, we may not be able to manage varia ons in the rates of in- come or even certain periods of no in- come. So, this can also be up to maxi- mum of age 65. Passive Income and Guaran- teed: Here we do not need to use body, mind and me at all and yet we keep receiving guaranteed same amount for life me with predefined interval like every month. We cand de- pend on this income as long as we are alive. There are thousands of financial products in the world but there is only and only 1 product that produces life me guaranteed passive income, and that is annui es. The above picture shows all 4 different possible scenarios post- re rement with respect to physical assets and adequate guaranteed monthly income. Quadrant 2: The person re ring in Q2 does not have any physical assets and does not have any guaranteed monthly income. For example, Mr. ABC was in a private job with moderate monthly salary, and the company did not offer any pension scheme. Whatev- er the lump sum re rement benefit received was u lized to pay the loans e same person, Whatever the lump sum re rement benefit received was u lized to pay the loans taken during his Contd... Nov 23 - Jan 24 INGENIOUS
  • 23. 23 Contd... working life to meet his major responsi- bili es. His life will be troubled and no choice but forced employment with reducing meta physical strength. Quadrant 3: The person re ring in Q3 does not have physical assets but has adequate guaranteed monthly in- come. For example, same Mr. ABC re- red from a private or government company which offered guaranteed monthly pension scheme or he had invested in a pension scheme which offered guaranteed monthly income on re rement. The same person, Whatev- er the lump sum re rement benefit received was u lized to pay the loans taken during his working life to meet his major responsibili es. But s ll, he will receive monthly guaranteed pen- sion of Rs 60,000 per month and which will rise in line with dearness index. Although there are no physical assets but because of adequate guar- anteed monthly income this person will be Autonomous, independent, can pursue his passion/hobbies which he could not during working life and will be joyful. Quadrant 4: The person re ring in Q4 has very huge physical assets and adequate guaranteed monthly income. This is the best possible quadrant to re re in but very few blessed people re re in this quadrant. Because of ade- quate guaranteed income here also the person enjoys autonomy, inde- pendence, confidence, pursue passion and is able to pass great legacy. Quadrant 1: The person re ring in Q1 has very huge physical assets but does not have any guaranteed monthly income. For example, Mr. XYZ has ac- quired a land of Rs 50 crores which has a court case running and is unlikely to finish during his life span. He is living in bungalow of Rs 20 Crores. Has 2 high end cars worth Rs 1.50 crore. Has Rs 20 lacs FD, which provides annual interest of Rs 1.20 lacs on current rates. Be- cause the person has huge assets peo- ple seeing him will say he is wealthy but he him self in the absence of ade- quate guaranteed monthly income will be worried and will have disputes. However s ll if someone has re red in Q1 we can move him to Q3 or Q4 by reducing 5%, 20%, 50% or some- mes 100% assets to provide adequate guaranteed monthly income. In above example we cannot sell Mr. XYZ’s dis- puted land but we can sell his bunga- low to liquidate Rs 20 crore. Have him purchase a luxurious apartment of Rs 5 Crore. Ask to keep Rs 10 crore as emer- gency fund and u lize its interest to fulfill once a while major ambi ons. Purchase an annuity of Rs 5 crore cu- prous which provides life me guaran- teed passive income of Rs 2.80 lacs per month. This way this person will be moved from Q1 to Q3. Some people who have 100 crore or more assets, just by u lizing his 5% of assets to purchase annuity which gives life me guaranteed pas- sive income can be moved from Q1 to Q4. As a responsible professional financial advisor, it is our duty help our clients to re re in Q3 or Q4. Clients who have already re red in Q1 can be moved to Q3 or Q4 by making provision of ade- quate monthly guaranteed income by reducing some assets. We should take care to help people ensure they do not re re in Q2. The HelpAge India study (above) shows majority of elderly people felt disrespected and verbally abused post- re rement. With sons and daughters-in -law being major abusers. 72% of the abused felt, regular income, the only way to escape abuse. By this me, we must have un- derstood that regular income plays very important role in phase 2 & phase 3 of life. Ac ve income demands use of body, mind and me tp produce the income. We can depend on ac ve in- come in phase 2 of life. But in phase 3 of life when body, mind and me do not support as much as in our young ages we must depend on passive and guaranteed income in re rement. The importance of planning & ensuring pro- vision of adequate passive and guaran- teed monthly income to ensure we re re in Q3 or Q4 is our basic necessity. To be con nue in the next part: 1. we will mathema cally explore & examine some possible ways to generate regular income post- re rement. 2. Mathema cal calcula on if we just save 5% of our salary for re rement what cuprous can be accumulated. 3. A scien fic mathema cal calcu- la on to arrive at the amount of cuprous one needs to have on re rement 4. A scien fic mathema cal calcu- la on to arrive what amount to save per month and in which asset class to achieve the de- sired cuprous for re rement. 5. A chart guiding re rement sci- ence in accumula on & distribu- on phase. SOURCE: SHRI GOPINATH SIR’S TEACHINGS ANKUR SHAH ***** Nov 23 - Jan 24 INGENIOUS
  • 24. 24 In accumula on period, we work for money & in distri- bu on period, money will work for us. This money helps us to enjoy our second innings of life. But this process is not easy because we have lot of tempta ons and lot of responsibili es. In this process, we should avoid some mis- takes to enjoy our second innings. Let’s play game of snake & ladder for easy under- standing. Snake 1: Generally we take advice from our friends or rela- ves on financial decisions. We should avoid it and consult a financial doctor/adviser. Snake 2: Our cash flow is dam- aged due to high investment in ‘real estate’. Preparing a cash flow analysis before inves ng in a second home or commercial property is advisable. Snake 3: Investment in Ponzi schemes like Chit funds or FD in non-reputed banks/companies. Snake 4: Inves ng in equity market without proper knowledge of the same and day trading for easy & fast money. Snake 5: Unnecessary use of credit cards, taking unneces- sary personal loans for picnics, unwanted luxury mobiles/ jew- ellery etc. Snake 6: Unplanned use of financial instruments which are already taken. For eg. – Re- rement corpus created for our future, used for child mar- riage or educa on, thus crea ng a gap in re rement fund corpus. Now let’s look in ladder concept – Ladder 1: In Financial pyramid, first step is to take ade- quate insurance. Products are life insurance, mediclaim, personal accident, cri cal illness etc. Ladder 2: If our goals are non-nego able, then the products in which we invest must give guaranteed returns. When we are planning for child educa on, then we need money at his/her age of 18, then planning should be made accordingly to get a fixed amount at the right me. Our needs are divided into minimum level, used to level or aspira on level. For minimum level we cannot invest in risky products, for aspira on level – we can take some risk by inves ng in some risky products. Ladder 3: Make a proper financial planning to es mate & calculate mathema cally - like your cash flow, financial goal se ng, goal-based corpus requirement etc. Ladder 4: Make proper asset alloca on by checking that risky products to be hedged by non-risky products. For eg. - we invest Rs. 40,000 Per month in SIP then same amount has to be invested in non-risky prod- ucts like LIC, Bank recurring deposits, post office scheme etc. for proper hedge. Ladder 5: Keep emergency fund in liquid form i.e we must be able to withdraw funds within 24 hours. Ladder 6: Read financial books, a end seminars and consult your financial planner atleast once in one/two years for fine tuning of financial in- struments to understand where we are lagging in finan- cial goals i.e to bridge the gap. Financial freedom is not easy, so we should not be bi en/eaten by snake. So keep moving by using success ladders. ***** Nov 23 - Jan 24 INGENIOUS Umesh Panchwagh Mumbai
  • 25. 25 Feeling Blessed is the only word which comes to my mind; when I think about my last 3 years Associa- tion with Go-Past; under the able guidance of Shri R. Gopinath Sir and Smt. Rajalakshmi Madam. With Insurance and Finance, we also learn as a hu- man how to develop ourself, and the “Belief that I can learn anything……” with regular practice. Attended some very good trainings through my agency career since 2009, but after joining Go-past in July 2020; I realized! “THIS IS WHERE I SHOULD BE” ALL MY LIFE, IF I WANT MY SELF, TO BRING OUT THE BEST IN ME. Each and every class has added some extra information and always a value addition in our life. Looking forward for so many more learnings and a life time association under our Guruji. Thank you from the bottom of my heart Sir, Mad- am, Team Gopast and all my classmates. It’s my pleasure to attend the training sessions. I think we all are “blessed by God” so we are associated with Go- Past. When we refer our notes, I feel that Sir is present in front of me and teaching the complicated maths in a very simple way. I have implemented almost all theories taught by Sir during my professional cliental calls. Sir has built my personality and taught us very important theories, like client behaviour, relationship building etc. Also, we learnt about many technical terms like standard deviation, beta, financial pyramid, time value of money and many more... We are eagerly waiting for the next module. Thank you so much to Gopinath Sir, Madam and entire Go Past team. T estimonials Nov 23 - Jan 24 INGENIOUS Geeta Mohan. P Umesh Panchwagh
  • 26. 26 There is a saying that “The Best Guru teaches from Heart and not from Books”. I have been so fortunate to join Go- past and attend multiple trainings under Gopinath Sir. It is not that we are learning subject matters of Insurance but Sir’s teaching help us to change the way we look at things. Tirukural is one of my favourites from Sir’s teaching. Sir has made us realise how great our ancestors were who could foresee the future and write about Fi- nances that are being taught in B-Schools now. The way our mythology and situations are linked and explained by Sir is amazing - Bhagavath Geetha and our mind set, stories from Mahabharatha and our current condition. Though we know the stories, we had not seen from the perspective how Sir has taught us. The case studies given in each class matches perfectly to the learnings. They are live examples of people around us. The group discussions conducted during the sessions make us think and also gives us opportunity to discuss and learn from our batch mates. Each class of Sir is high- ly organised and the google forms that is sent at the end of classes help us do the calculations practically. Initially when I heard about Map of Life, it was so differ- ent and new but now I have been listening to this so many times that things automatically come to mind. Sir’s teachings have made even the International subjects easy for us to understand due to the simplicity in teaching. I thank you from bottom of my heart for all the learnings Sir and Mam has been of great help and support every time. I also want to thank the complete team of Go-past for all their help and kind gestures. Thank you thank you thank you!!! Step by step application of theories what we have learned. Great learning experience. What we have learned in FCFP (UK) it's application in Indian context also learned. No words to express my gratitude. T estimonials Nov 23 - Jan 24 INGENIOUS Bharathi Srinivasan Vinod Jaiswal
  • 27. 27 Data Centre Money Market 13-Nov-2023 Call Rates %-%* * as on previous day Government Securi es Market 7.18% GS 2033 7.2998% # 7.26% GS 2033 7.3334% # 7.37% GS 2028 7.2693% # 7.06% GS 2028 7.2703% # 7.33% GS 2026 7.2509% # 6.69% GS 2026 7.2416% # 91 day T-bills 6.9221%* 182 day T-bills 7.1068%* 364 day T-bills 7.1489%* * cut-off at the last auc on # as on end of previous working day Capital Market S&P BSE Sensex 65259.45 * Ni y 50 19525.55* * as on previous day (13-11-2023) GDP (US$ million) by country Sr. No. Country/Territory UN Region IMF Es mate Year World — 104,476,432 2023 1 United States Americas 26,949,643 2023 2 China Asia 17,700,899 2023 3 Japan Asia 4,230,862 2023 4 Germany Europe 4,429,838 2023 5 India Asia 3,732,224 2023 6 United Kingdom Europe 3,332,059 2023 7 France Europe 3,049,016 2023 8 Italy Europe 2,186,082 2023 9 Canada Americas 2,117,805 2023 10 Brazil Americas 2,126,809 2023 11 Russia Europe 1,862,470 2023 12 South Korea Asia 1,709,232 2023 13 Australia Oceania 1,687,713 2023 14 Mexico Americas 1,811,468 2023 15 Spain Europe 1,582,054 2023 Latest Policy Rates (Source RBI website) as at 01:30 pm on 13-Nov-2023 Policy Rates Reserve Ra os Exchange Rates Lending / Deposit Rates Policy Repo Rate 6.50% CRR 4.50 % INR/ 1 USD 83.3248 Base Rate 8.95% - 10.10% Standing Deposit Facility Rate 6.25% SLR 18.00 % INR/ 1 GBP 101.953 MCLR (Overnight) 7.95% - 8.50% Marginal Standing Facili- ty Rate 6.75% INR/ 1 EUR 89.0648 Savings Deposit Rate 2.70% - 3.00% Bank Rate 6.75% INR/ 100 JPY 54.900 Term Deposit Rate > 1 Year 6.00% - 7.25% Fixed Reverse Repo Rate 3.35% Latest Small Savings Schemes Rates 01-Oct-2023 to 31-Dec-2023 Instrument Rates % Compounding Frequency Savings Deposit 4.00 Annually 1 Year Time Deposit 6.90 Quarterly 2 Year Time Deposit 7.00 Quarterly 3 Year Time Deposit 7.00 Quarterly 5 Year Time Deposit 7.50 Quarterly 5 Year Recurring Deposit 6.70 Quarterly Senior Ci zen Savings Scheme 8.20 Quarterly & paid Monthly Income Account 7.40 Monthly & paid Na onal Savings Cer ficate 7.70 Annually Public Provident Fund 7.10 Annually Kisan Vikas Patra (Matures in 115 months) 7.50 Annually Sukanya Samriddhi 8.00 Annually Source: Tradingecnomics.com US Fed Rate 5.50% (as on Nov-2023) 10 Year US Bond yield 4.6777% (as on 12-Nov-2023) US Infla on 3.7% (as on Sep 23) US GDP Annual Growth Rate 2.90% (as on Sep 23) Gross Domes c Product June-23 7.8% GDP Index of Industrial Produc on Sep-23 5.8% IIP Consumer Price Index Oct-23 4.87% CPI Nov 23 - Jan 24 INGENIOUS
  • 28. .. .' F. NO.370142/28/2023-TPL Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) *********** Circular No. 15 of 2023 Dated tbe 16th August, 2023 Sub: Guidelines under clause (lOD) of section 10 oftbe Income-tax Act. 1961- reg. Clause (100) of section IO of the Income-tax Act, 1961 (the Act) provides for income-tax exemption on any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy subject to certain exclusions. 2. The Finance Act, 2023 (Finance Act), inter-alia,- l. amended clause (100) of section 10 of the Act by substituting the existing sixth proviso with the new sixth, seventh and eighth provisos to, inter-alia, provide that: (i) with effect from assessment year 2024-25, the sum received under a life insurance policy, other than a unit linked insurance policy, issued on or after the 151 day of April, 2023, shall not be exempt under the said clause if the amount of premium payable for any of the previous years during the term of such policy exceeds Rs 5,00,000 [sixth proviso]; (ii) if premium is payable for more than one life insurance policy, other than a unit linked insurance policy, issued on or after 01.04.2023, the exemption under the said clause shall be available only with respect to such policies where the aggregate premium does not exceed Rs 5,00,000 for any of the previous years during the term ofany of those policies [seventh proviso]; (iii) the sixth and seventh provisos shall not apply in case of any sum received on the death ofa person [eighth proviso] I!. inserted a new clause (xiii) in sub-section (2) of section 56 to provide that where any sum is received, including the amount allocated by way of bonus, at any time during a previous year, under a life insurance policy, other than the sum,-
  • 29. r Circular No. 15 of 2023 a. received under a unit linked insurance policy, or b. being the income referred to in clause (iv) ofsub-section 2, which is not to be excluded from the total income of the previous year in accordance with the provisions of clause (I OD) of section 10, the sum so received as exceeds the aggregate ofthe premium paid, during the term of such life insurance policy, and not claimed as deduction in any other provision of the Act, computed in the manner as may be prescribed shall be chargeable to income-tax under the head "Income from other sources"; III. inserted a sub-clause (xviid) in clause (24) of section 2 to provide that income shall include any sum referred to in clause (xiii) of sub-section (2) of section 56. 2.1 It may be noted that Finance Act, 2021 had earlier inserted, fourth to seventh provisos in clause (I OD) of section 10 to provide that the sum received under any unit linked insurance policy [ULIPj (except any such sum received on the death of a person), issued on or after the 01.02.2021 shall not be exempt under said clause, if the amount of premium payable for any of the previous years during the term of such policy exceeds Rs 2,50,000 (fourth proviso). It was also provided that if the premium is payable for more than one UUPs, issued on or after the 01.02.2021, the exemption under the said clause shall be available only with respect to such policies where the aggregate premium does not exceed Rs 2,50,000 for any of the previous years during the term of any of the policies (fifth proviso). Issuance of Guidelines for removal of difficulties 3. Ninth proviso to clause (I OD) of section 10 of the Act also empowers the Central Board of Direct Taxes (Board) to issue guidelines, with the previous approval of the Central Government, in order to remove any difficulty which arises while giving effect to the provisions of the said clause. In exercise of the powers under this proviso, Board, with the previous approval of the Central Government, hereby issues the following guidelines. Guidelines 4. In these guidelines:- (i) "eligible life insurance policy" means any life insurance policy (other than unit linked insurance policy) issued on or after 0 1.04.2023; 2
  • 30. : Circular No. 15 of 2023 (ii) "consideration" means sum received (of any nature including bonus) under an eligible life insurance policy (iii)"current previous year" means the previous year in which consideration is received and its taxability is being examined. 4.1 Consideration received during the prevIous year under an eligible life insurance policy shall be exempt or not exempt under clause (100) of section 10 of the Act, subject to the satisfaction of other provisions of said clause. The same are explained by way of examples of different situations:- 4.2 Situationl: No consideration is received by the assessee on any eligible life insurance policies during any previous year preceding the current previous year or consideration has been received on such eligible life insurance policies but has not been claimed exempt. The exemption under clause (100) of section 10 of the Act shall be determined as under: I. If the assessee has received consideration, during the current previous year, under one eligible life insurance policy only and the amount of premium payable on such eligible life insurance policy does not exceed Rs 5,00,000 for any of the previous years during the term of such eligible life insurance policy, such consideration shall be eligible for exemption under the said clause (100) subject to fulfilment of other conditions; II. If the assessee has received consideration, during the current previous year, under one eligible life insurance policy only and the amount of premium payable on such eligible life insurance policy exceeds Rs 5,00,000 for any of the previous years during the term of such eligible life insurance policy, such consideration shall not be eligible for exemption under the said clause (100); III. If the assessee has received consideration, during the current previous year, under more than one eligible life insurance policies and the aggregate of the amount of premium payable on such eligible life insurance policies does not exceed Rs 5,00,000 for any of the previous years during the term of such eligible life insurance policies, such consideration shall be eligible for exemption under the said clause (100) subject to fulfilment ofother conditions; IV. If the assessee has received consideration, during the current previous year, under more than one eligible life insurance policies and the aggregate of the amount of premium payable on such eligible life insurance policies exceeds Rs 5,00,000 for any 3
  • 31. Circular No. 15 of 2023 of the previous years during the term of such eligible life insurance policies, the consideration under only such eligible life insurance policies shall be eligible for exemption under the said clause (IOD) where aggregate of the amount of the premium payable does not exceed Rs 5,00,000 for any of the previous years during their term (Refer Examples) subject to fulfilment of other conditions. 4.3 Situation 2: Consideration has been received by the assessee under anyone or more eligible life insurance policies during any previous year preceding the current previous year and it has been claimed exempt under clause (lOD) of section 10 of the Act. Such eligible life insurance policies are referred as "old eligible life insurance policies" in this paragraph and corresponding examples and reference to eligible life insurance policies in this paragraph and corresponding examples shall not include old eligible life insurance policies. The exemption under clause (lOD) of section 0 of the Act shall be determined as under: I. If the assessee has received consideration, during the current previous year, under one eligible life insurance policy only and aggregate amount of premium payable on such eligible life insurance policy and old eligible life insurance policies does not exceed Rs 5,00,000 for any of the previous year during the term of such eligible life insurance policy, the consideration under such eligible life insurance policy shall be eligible for exemption under the said clause (I OD) provided it is not excluded under sub-clauses (a) to (d) of said clause (lOD); 11. If the assessee has received consideration, during the current previous year, under one eligible life insurance policy only and aggregate amount of premium payable on such eligible life insurance policy and old eligible life insurance policies exceeds Rs 5,00,000 for any of the previous year during the term of such eligible life insurance policy, the consideration under such eligible life insurance policy shall not be eligible for exemption under the said clause (lOD); 111. If the assessee has received consideration, during the current previous year, under more than one eligible life insurance policies and aggregate of the amount of premium payable on such eligible life insurance policies and old eligible life insurance policies does not exceeds Rs 5,00,000 for any of the previous years during the term of such eligible life insurance policies, such consideration shall be eligible for exemption under the said clause (10D) provided it is not excluded under sub- clauses (a) to (d) of said clause (lOD); 4
  • 32. Circular No. 15 of 2023 iv. If the assessee has received consideration, during the current previous year, under more than one eligible life insurance policies and aggregate of the amount of premium payable on such eligible life insurance policies and old eligible life insurance policies exceeds Rs 5,00,000 for any of the previous years during the term of such eligible life insurance policies, consideration under only such eligible life insurance policies shall be eligible for exemption under the said clause (100) where aggregate amount of premium along with the aggregate amount of premium of old eligible life insurance policies does not exceed Rs 5,00,000 for any of the previous years during the term ofany ofsuch eligible life insurance policies (Refer examples) provided it is not excluded under sub-clauses (a) to (d) of said clause (100). 4.4 The above guidelines are explained with the help of the following examples: Example 1: The assessee has the following policy which satisfies all the conditions laid down in clause (100) of section 10 ofthe Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). Life Insurance Policy A Date of issue 01.04.2013 Annual premium (Rs) 6,00,000 Sum assured (Rs) 60,00,000 Consideration received as on 01.11.2023 on maturity 70,00,000 Taxability as per sixth proviso to clause (10D) of section 10 of the Act: The sum received on maturity will be exempt under clause (lOD) of section 10 of the Act as the policy has been issued before 01.04.2023 and accordingly not covered by the 6th to 8 th provisos to the said clause (10) of section 10 of the Act, as substituted by Finance Act, 2023. Example 2: The assessee has the following policy which satisfies all the conditions laid down in clause (lOD) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The 5
  • 33. ----- Circular No. 15 of 2023 assesse did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2033-34. Life Insurance Policy A Date of issue 01.04.2023 Annual premium (Rs) 6,00,000 Sum assured (Rs) 60,00,000 Consideration received as on 01.11.203300 maturity 70,00,000 Taxability as per sixth proviso to clause (tOD) of section 10 of the Act: The consideration received will not be exempt under clause (IOD) of section 10 of the Act as per the provisions of sixth proviso since the annual premium payable on the policy exceeded Rs 5,00,000. Example 3: The assessee has the following policy which satisfies all the conditions laid down in clause (I OD) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whercof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2033-34. Life Insurance Policy A Date of issue 01.04.2023 Annual premium (Rs) 5,00,000 Sum assured (Rs) 50,00,000 Consideration received as on 01.11.2033 on maturity 52,00,000 Taxability as per sixth proviso to clause (10D) of section 10 of the Act: The consideration received will be exempt under clause (100) of section 10 of the Act as the provisions of sixth proviso will not apply since the annual premium payable on the policy does not exceed Rs 5,00,000 in any ofthe previous years during the term of the policy. 6
  • 34. Circular No. 15 of 2023 Example 4: The assessee has the following policies all of which satisfy all the conditions laid down in clause (100) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2033-34. Life Insurance Policy A B Date of issue 01.04.2023 01.04.2023 Annual premium (Rs) 4,50,000 5,50,000 Sum assured (Rs) 45,00,000 55,00,000 Consideration received as on 01.11.2033 on maturity 52,00,000 60,00,000 Taxability as per seventh proviso to clause (1OD) of sectiou 10 of the Act: The consideration received under life insurance policy "8" will not be exempt under clause (100) of section 10 of the Act as per the provisions ofseventh proviso, since aggregate of the annual premium payable for life insurance policy "A" and life insurance policy "8 " exceeds Rs 5,00,000 during the term of these policies. However, the consideration received under life insurance policy "A" shall be exempt under clause (100) of section 10 of the Act since its annual premium does not exceed Rs 5,00,000 in any of the previous years during the term of the policy. Example 5: The assessee has the following policies all of which satisfy all the conditions laid down in clause (100) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2033-34. Life Insurance Policy A B C Date of issue 01.04.2023 01.04.2023 01.04.2023 Annual premium (Rs) 1,00,000 3,50,000 6,00,000 7 ..-
  • 35. Circular No. 15 of 2023 Sum assured (Rs) 10,00,000 35,00,000 60,00,000 Consideration received as on 01.11.2033 on maturity 12,00,000 40,00,000 70,00,000 Taxability as per seventh proviso to clause (100) of section 10 of the Act: • The consideration received under life insurance policy "c" will not be exempt under clause (100) of section 10 of the Act as per the provisions of seventh proviso since aggregate of the annual premium payable for life insurance policy "A", life insurance policy "B" and life insurance policy "c' exceeds Rs 5,00,000 during the term of these policies. • However, the consideration received under life insurance policies "A" and "B" shall be exempt under clause (100) of section 10 of the Act, since aggregate of annual premium payable for these two policies does not exceed Rs 5,00,000 for any previous year during the term of these two policies. Example 6: The assessee has the following policies all of which satisfy all the conditions laid down in clause (100) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2033-34. Life Insurance Policy X A B C Date of issue 01.04.2022 01.04.2023 01.04.2023 01.04.2023 Annual premium (Rs) 5,00,000 1,00,000 3,50,000 6,00,000 Sum assured (Rs) 50,00,000 10,00,000 35,00,000 60,00,000 Consideration received as on 60,00,000 01.11.2032 on maturity Consideration received as on 12,00,000 40,00,000 70,00,000 01.11.2033 on maturity Taxability as per seventh proviso to clause (100) of section 10 of the Act: 8
  • 36. Circular No. 15 of 2023 • The consideration under life insurance policy "X" will be exempt under clause (100) of section 10 of the Act as the policy has been issued before 01.04.2023 and it is not covered by recently introduced provisions. • The consideration received under life insurance policy "C" will not be exempt under clause (I00) of section 10 of the Act as per the provisions of seventh proviso since aggregate of the annual premium payable for life insurance policy "A", life insurance policy "8 ' and life insurance policy "C" exceeds Rs 5,00,000 during the term of these policies. • However, the consideration received under life insurance policy "A" and "8" shall be exempt under clause (I00) of section 10 of the Act, since aggregate of annual premium payable for these two policies does not exceed Rs 5,00,000 for any previous year during the term of these two policies. Example 7: The assessee has the following policies all of which satisfy all the conditions laid down in clause (100) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2033-34. Life Insurance Policy X A B C Date of issue 01.04.2023 01.04.2024 01.04.2024 01.04.2024 Annual premium (Rs) 4,50,000 1,00,000 1,50,000 6,00,000 Sum assured (Rs) 40,50,000 10,00,000 15,00,000 60,00,000 Consideration received as on 50,00,000 01.11.2033 on maturity Consideration received as on 12,00,000 18,00,000 70,00,000 01.11.2034 on maturity Taxability as per seventh proviso to clause (100) of section 10 of the Act: • The consideration under life insurance policy "X" will be exempt for the previous year 2033-34 under clause (100) of section 10 of the Act since the annual premium does not exceed Rs 5,00,000. 9
  • 37. Circular No. 15 of 2023 • The consideration received under life insurance policies "A", "8" and "e" will not be exempt under clause (J 00) of section 10 of the Act as per the provisions of seventh proviso since aggregate of the annual premium payable for these three life insurance policies and life insurance policy "X" exceeds Rs 5,00,000 for the previous year 2023-24 to 2033-34 which fall under the tenure of these policies. The consideration under life insurance policy "A" will also not be eligible for exemption under the said clause as the aggregate of annual premium of life insurance policies "X" and "A" exceeds Rs 5,00,000. Example 8: The assessee has the following policies all of which satisfy all the conditions laid down in clause (100) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2043-44. Life Insurance Policy X A Date of issue 01.04.2023 01.04.2034 Annual premium (Rs) 5,00,000 5,00,000 Previous years for which premium is paid 2023·24 to 2033-34 2034-35 to 2047·48 Sum assured (Rs) 50,00,000 50,00,000 Consideration received as on 01.11.2043 on m·aturity 52,00,000 Consideration received as on 01.1 1.2048 on maturity 52,00,000 Taxability as per seventh proviso to clause (lOD) of section 10 of the Act: The consideration under life insurance policies "X" and "A" will be exempt for the previous year 2043-44 and previous year 2048-49 respectively, under clause (100) of section JO of the Act since the aggregate of the annual premium payable for the life insurance policies "X" and "A" together did not exceed Rs 5,00,000 for any of the previous years during the term of life insurance policies "X" and "A", 10
  • 38. Circular No. 15 of 2023 Example 9: The assessee has the following policies all of which satisfy all the conditions laid down in clause (IOD) of section 0 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2033·34. Life Insurance Policy X A B C Date of issue 01.04.2023 01.04.2024 01.04.2024 01.04.2024 Annual premium (Rs) 2,50,000 2,00,000 2,50,000 6,00,000 Sum assured (Rs) 25,00,000 20,00,000 25,00,000 60,00,000 Consideration received on maturity as 30,00,000 on 01.1 1.2033 Consideration received as on 24,00,000 38,00,000 70,00,000 01.1 1.2034 on maturity Taxability as per seventh proviso to clause (IOD) of section 10 of the Act: o The consideration under life insurance policy "X" will be exempt under clause (100) of section 10 of the Act for the previous year 2033-34 since the annual premium does not exceed Rs 5,00,000. o The consideration received under life insurance policy "8" only will be exempt under clause (IOD) of section 10 of the Act during the previous year 2034-35 while consideration received under life insurance policies "A" and "C" will be taxable as per the provisions of seventh proviso. o The exemption is restricted to consideration under life insurance policy "8" since aggregate of the annual premium payable for the life insurance policies "X" and "8" together did not exceed Rs 5,00,000 for any of the previous years during the term of life insurance policies "X" and "8 ". o Here instead of life insurance policy "B", we could have taken life insurance policy "A" as the aggregate of annual premium payable for life insurance policies "X" and "A" is also less than Rs 5,00,000 during the term of these life insurance policies. However, since including life insurance policy "8" instead of life insurance policy II -
  • 39. Circular No. 15 of 2023 "A" is more beneficial to the assessee, life insurance policy "8 " has been considered for exemption. Example 10: The assessee has the following policies all of which satisfy all the conditions laid down in clause (100) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2033-34. (It needs to be specified that consideration under life insurance policy "X" has not been claimed exempt) Life Insurance Policy X A B C Date of issue 01.04.2023 01.04.2024 01.04.2024 01.04.2024 Annual premium (Rs) 1,00,000 1,00,000 1,50,000 3,00,000 Sum assured (Rs) 10,00,000 10,00,000 15,00,000 30,00,000 Consideration received on maturity as 12,00,000 on 01.05.2033 Consideration received as on 12,00,000 18,00,000 34,00,000 01.05.2034 on maturity Taxability as per seventh proviso to clause (100) of section 10 of the Act: • The consideration under life insurance policy "X" was not claimed to be exempt under clause (100) of section 10 of the Act by the assessee therefore it is not covered within the definition of old eligible life insurance policies. • The consideration received under life insurance policies "8" and "e" will be exempt under clause (100) of section 10 of the Act. However, since aggregate of the annual premium payable for the life insurance policies "8" and "e" together did not exceed Rs 5,00,000 for any of the previous years during the term of any of these life insurance policies "8" or "e" and life insurance policy "X" was not claimed to be exempt under clause (100) of section 10 of the Act, the consideration received under life insurance policy "A" will be taxable as per the provisions of seventh proviso to the said clause (100) of section 10 of the Act. It may again be stated that life insurance policies "8" and "e" are considered for exemption instead of combination 12
  • 40. Circular No. 15 of 2023 of policies "A" and "B" or policies "A" and "C" as this combination (i.e. life insurance policies "B" and "C") is more beneficial to the assessee. Example 11: The assessee has the following policies all of which satisfy all the conditions laid down in clause (100) of section 10 of the Act (other than the conditions provided under the sixth and seventh proviso of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policy in earlier previous years preceding the previous year 2035-36 other than under life insurance policies "X" and "Y". Life Insurance X Y A B C Policy Date of issue 01.04.2023 01.04.2023 01.04.2024 01.04.2024 01.04.2024 Annual 2,00,000 2,00,000 2,00,000 3,00,000 6,00,000 premium (Rs) Sum assured 20,00,000 20,00,000 20,00,000 30,00,000 60,00,000 (Rs) Consideratiun received on 12,00,000 surrender as on 01.07.2033 Consideration 24,00,000 received on maturity as on 01.11.2034 Consideration 24,00,000 36,00,000 70,00,000 received as on 01.11.2035 on maturity Taxability as per seventh proviso to clause (lOD) of section 10 of the Act: • The surrender value of life insurance policy "X" and consideration received under life insurance policy "Y" on maturity will be exempt under clause (100) of section 10 of 13
  • 41. Circular No. 15 of 2023 the Act since the annual premium does not exceed Rs 5,00,000 during the term of these policies. • The consideration received under life insurance policies "A", "8 " and "C" will be taxable under clause (100) of section 10 of the Act as per the provisions of seventh proviso to the said clause (I OD) since aggregate of the annual premium payable for the life insurance policies "X" and "Y" for the previous year 2023-24 to 2033-34 was Rs 4,00,000. If the annual premium of life insurance policies "A" or "8" or "C" is added then the aggregate of the premium will exceed Rs 5,00,000 for the previous year 2024-25 to 2033-34. • As per the provisions of seventh proviso, in case of mUltiple life insurance policies, the aggregate of the premium payable for all the policies which are claimed to be exempt under clause (100) of section 10 of the Act shall not exceed Rs 5,00,000 for any previous year during the term ofany of those policies. Example 12: If in Example II, the assessee does not claim exemption with respect to the surrender value of life insurance policy "X", then the consideration received under life insurance policy "Y" will be exempt for the previous year 2034-25 and the consideration received under life insurance policy "8" will be exempt for the previous year 2035-36 under clause (100) of section 10 of the Act. The exemption is restricted to life insurance policy "8" since the aggregate of the annual premium payable for the life insurance policies "Y" and "8" together did not exceed Rs 5,00,000 for any of the previous years during the term of life insurance policies "Y" or "8" and the assessee did not claim life insurance policy "X" as exempt. Life insurance policy "8" is preferred in place of life insurance policy "A" as it is more beneficial to the assessee. Example 13: The assessee has the following life insurance policies and unit linked insurance policies (ULIPs) all of which satisfY all the conditions laid down in clause (100) of section 10 of the Act (other than the conditions provided under the fourth, fifth, sixth and seventh provisos of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policies or unit liked insurance policies in earlier previous years preceding the previous year 2033-34 other than under unit liked insurance policy "X" and under life insurance policy "A". 14
  • 42. Circular No. 15 of 2023 Life Insurance A B C Policy Unit Linked X Y Insurance Policy Date of issue 01.04.2021 01.04.2023 01.04.2023 01.04.2023 01.04.2024 Annual 1,00,000 1,00,000 1,00,000 1,50,000 3,00,000 premium (Rs) Sum assured 10,00,000 10,00,000 10,00,000 15,00,000 30,00,000 (Rs) Consideration 6,00,000 6,00,000 received on surrender as on 01.07.2033 Consideration 12,00,000 18,00,000 34,00,000 received on maturity as on 01.1 1.2034 Taxability as per fifth and seventh proviso to clause (IOD) of section 10 of tbe Act: • As per the fifth proviso, the surrender value of unit linked insurance policy "X" and consideration received under unit linked insurance policy "Y" on maturity will be exempt under clause (100) of section 10 of the Act since the annual premium does not exceed Rs 2,50,000 during the term of these policies. • Further, the consideration received under the life insurance policy "A" during the previous year 2033-34 shall be exempt under clause (laD) of section 10 of the Act and will become old eligible life insurance policy for which exemption has been claimed. Then, for the previous year 2034-35, the consideration for life insurance policy "C" only shall be exempt under clause (100) of section Ia of the Act as the sum of premium of life insurance policies "A" and "C" does not exceed Rs 5,00,000 in any of the previous years during the term of these policies. The consideration for life insurance policy "8 " is not exempt since sum of premium of life insurance policies "A", "8 " and "C" exceeds Rs 5,00,000 during the term of these policies. Life insurance policy "C" is preferred over life insurance policy "8 " being more beneficial 15
  • 43. Circular No. 15 of 2023 to the assessee. However, if the consideration from life insurance policy "A" was not claimed as exempt in previous year 2033-34, then the consideration from both the life insurance policies "8" and "e" shall be exempt under clause (IOD) of section 10 of the Act. Clarification on GST Component 5. In addition to the above, it is also clarified that the premium payable/ aggregate premium payable for a life insurance policy/ policies, other than a unit linked insurance policy, issued on or after the Ist day of April, 2023, for any previous year, shall be exclusive of the amount of the Goods and Service Tax payable on such premium. This can be explained by the following example: Life Insurance Policy A Date of issue 01.04.2023 Annual premium (Rs) 5,00,000 , GST (@4.5% of premium) 22,500 Total Premium Payable 5,22,500 Sum assured (Rs) 60,00,000 Consideration received as on 01.11.2033 on maturity 70,00,000 Clarity on premium of Term life insurance policy 6. It is further clarified that the provision of the sixth and seventh proviso of clause (lOD) of section 10 shall not be applicable in case of a term life insurance policy i.e. where sum under a life insurance policy is only paid to the nominee in case of the death of the person insured during the term of the policy and no amount is paid to anyone if the insured person survives the policy tenure. Hence, any sum received under a term insurance policy shall continue to be exempt under clause (IOD) of section 10 of the Act, irrespective of the 16 - -
  • 44. Circular No. 15 of 2023 amount of the premium payable in respect of such policy. Further the premium paid for such policies shall not be counted for checking Rs 5,00,000 limit for the purposes of sixth and seventh proviso. (Sourabh Jai ~/o'/,/~v3 Under Secretary to the Government ofindia Copy to: I. PS to FM/ OSD to FMI PS to MoS(F)/ OSD to MoS(F) 2. PPS to Secretary (Revenue) 3. Chairman, CBDT & All Members, CBDT 4. All Pr. DGsIT/ Pr. CCsIT 5. All Joint Secretaries! CsIT/ Directors/ Deputy Secretaries/ Under Secretaries ofCBDT 6. The C&AG oflndia 7. The JS & Legal Adviser, Ministry of Law & Justice, New Delhi 8. Pr.CIT (M&TP), Official Spokesperson ofCBDT 9. % DGIT (Systems), New Delhi for uploading on official website. 10. JCIT (Database Cell), CBDT for uploading on www.irsofficersonline.gov.in 17
  • 45. Office Bearers Disclaimer: This magazine is compiled by the Organising commi ee of the Alumni of the FCFP course of Go-past centre for learning Pvt Ltd., This is meant for circula on amongst the associates of Go-past. This magazine is academically valuable to the associates. The data and the sta s cs given in the various ar cles are complied from public web-sites without infringing copyrights. The opinions expressed by the authors of the ar cles appearing here are strictly their views, the publica on of it does not indicate that the publisher is suppor ng those views. It should be understood that such views expressed and should not be considered as the official communica on of the ins tu ons these authors are working for or represen ng. Readers who would like to repeat these contents either by copying from or by quo ng this magazine or using it to support their communica ons need to take specific permission R Gopinath CHAIRPERSON Ankur Shah CONVENOR Savita Pillai SECRETARY Geeta Mohan P MEMBER Vikas Arora MEMBER Ajay Kr Tyagi MEMBER Inderpal S Bindra MEMBER K M S Sriram MEMBER