Varishtha Pension Bima Yojana (Plan 828) was launched by Government of India on 15/08/2014 for person aged more than 60 years to provide a social security through lifetime pension to senior citizens. Varishtha Pension Bima Yojana was sold and administered by Life Insurance Corporation of India. From 15/08/2014 to 31/03/2015 service tax at the rate of 3.5% was collected from the customers on premium, which ranged from Rs. 2333 to Rs. 23333. In the Budget 2015 finance minister provided relaxation of service tax on Varishtha Pension Beema Yojana with effect from 01/04/2015.
Recently government of India issued a notification for the refund of service tax collected on Varishtha Pension Beema Yojana. And following the government’s directive LIC of India has issued the circular regarding the refund of service tax on varishtha pension bimaÂ yojana.
How the customer will get the service tax back in Varishtha Pension Bima Yojana
LIC of India has made the provision for ONE TIME Refund of Service Tax underÂ Varishtha Pension Bima Yojana (Plan 828) policies, issued from 14/8/2014 toÂ 31/03/2015 as follows :
- IPP Cells of LIC of India: Will refund Service tax for policies surrendered and also policies where annuity is being paid
- Branch Offices of LIC of India: will refund Service tax for policies where Death Claim have been paid under Varishtha Pension Bima Yojana Policies, the payment of which will be in favour of Nominee.
Policy holders of varishtha pension bima yojana (Plan 828) will getÂ the intimation related to refund of service tax. Refund will be made through NEFT to the account registered with LIC of India.