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Overseas insurance payouts on life insurance

Newbie

Views 321

Replies 2

Hi there

I am a permanent tax resident in Australia

I am having Life Insurance policy in India which is maturing with an insurance payout in INR.
The policy I am holding is maturing after holding it for 10 years even while I am alive as per the conditions of the policy.
As the proceeds are from an insurance company, they are considered to be tax free in India.
It’s not an annuity or pension payment and is a one time payment at the end of the policy period.

Do I have to declare it as income in Australia? Is it considered as income? If it is considered income, do the premiums have to be deducted (as that part is not a profit)?
Cheers

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 1

** This has been edited by a Moderator to reflect updated information **

 

Hi @Vijay1,

 

We have answered a similar post on our forum, you can view our response via the link below.

 

The myGov 2020 Q22 also includes, do not declare as income:

  • bonus amounts received after the tenth year of the policy.

 

Links -

myTax Q22 Bonuses from life insurance

Similar post answered -

Bonuses from OS life insurance.

 

All the best.

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

** This has been edited by a Moderator to reflect updated information **

 

Hi @Vijay1,

 

We have answered a similar post on our forum, you can view our response via the link below.

 

The myGov 2020 Q22 also includes, do not declare as income:

  • bonus amounts received after the tenth year of the policy.

 

Links -

myTax Q22 Bonuses from life insurance

Similar post answered -

Bonuses from OS life insurance.

 

All the best.

Former Community Support

Replies 0

Hi @Vijay1,

 

After reviewing our initial answer we have updated it.