Circular: Guidelines under clause (10D) section 10 of the Income-tax Act, 1961.
The Finance Act, 2021 amended clause (10D) of section 10 of the Act, which provides for income-tax exemption on the sum received under a life insurance policy, including any sum allocated by way of bonus on such policy subject to certain exclusions by inserting fourth to seventh provisos whereby : The seventh proviso to the said clause (10D) seeks to 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.
