Budget 2025 offers tax exemption on ULIP returns for non-residents purchasing from IFSC offices

The 2025 Budget introduces a tax exemption for non-residents purchasing Unit Linked Insurance Plans (ULIPs) and other insurance policies from registered offices in the International Financial Services Centre (IFSC). This exemption applies regardless of premium amounts, provided the annual premium does not exceed 10% of the sum assured. Previously, Indian residents faced limits on premium amounts to qualify for tax exemptions. Now, only non-residents benefit from this new rule, which takes effect on April 1, 2025. Indian residents will still be subject to existing tax conditions. The amendment aims to enhance the appeal of the IFSC for financial services. It allows non-residents to enjoy tax-free returns on insurance policies, promoting investment in this jurisdiction.