1. JPMorgan announced that it will include Indian government bonds in its emerging markets bond index starting June 2024. This inclusion will attract an estimated $25-40 billion in passive inflows to India over the next 1-2 years as index funds purchase the required bonds. 2. The inclusion recognizes India's growing economy and appeal as an investment destination for international investors. It will widen India's investor base and ease financing of its current account deficit. 3. However, it may also increase sensitivity to global factors and volatility. India will need to balance monetary and fiscal policies to account for foreign investor perceptions and manage any currency appreciation or bond yield movements.

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
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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
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SECRETARY
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MEMBER
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