Can life insurance policies be attached for income tax recoveries?
Your concern is palpable, especially when loans and debt are common these days
Can life insurance policies be attached for income tax recoveries?
Laxman Aurora, Delhi
Your concern is palpable, especially when loans and debt are common these days. Debt, however, also brings along an equal quantum of responsibility along with it. Things are good until repayments are regular. If a person starts defaulting or if the borrower dies, the lenders arrive at the doorstep and they have the power to attach assets to recover their dues. Similarly, if you have default in income tax payment, a life insurance policy can be attached to recover income tax liabilities. However, if the policy is acquired under the Married Women’s Property Act or if it is legally assigned in favour of someone, then the policy cannot be attached.