Refund of Service tax in Varishtha pension Bima yojana

Refund of Service tax in Varishtha pension Bima yojana

Life Insurance

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.

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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 bima 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 under Varishtha Pension Bima Yojana (Plan 828) policies, issued from 14/8/2014 to 31/03/2015 as follows :

  1. IPP Cells of LIC of India: Will refund Service tax for policies surrendered and also policies where annuity is being paid
  2. 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 get  the intimation related to refund of service tax. Refund will be made through NEFT to the account registered with LIC of India.

Varishtha Pension Bima Yojana is Closing  on 14/08/15

Varishtha Pension Bima Yojana is Closing on 14/08/15

Life Insurance

Varishtha Pension Bima Yojana (VPBY) which was launched government on 15/08/2014 is soon going to close on 14/08/2015. Varishtha Pension Bima Yojana is a pesion secheme which is giving a return of 9% per annum if pension is opted in monthly mode and 9.38% when opted for yearly mode. Minimum amount for investment in VPBY is Rs. 63960, Rs. 65430, Rs. 66170 and Rs. 66665 for yearly, half yearly, quarterly and monthly mode respectively and miximum amount which can be invested in Varishtha Pension Bima Yojana (VPBY) is Rs. 639610, Rs. 654275, Rs. 661690 and Rs. 666665 for yearly, half yearly, quarterly and monthly mode respectively.
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