I am facing an income tax case; I am worried about the tax authorities attaching my life insurance policies in case they need to recover tax dues.
Lesson for others to avoid such a possibility is to acquire life insurance under the Married Women’s Property Act
I am facing an income tax case; I am worried about the tax authorities attaching my life insurance policies in case they need to recover tax dues.
Saurabh Tyagi, Bhopal
Your case is interesting; the value in a life insurance policy is an asset like any other movable asset. Therefore, life insurance policies can be attached to recover income tax dues. The lesson for others to avoid or get out of such a possibility is to acquire life insurance under the Married Women’s Property Act or if it is legally assigned in favour of someone. Once the policy is attached this way, the law does not allow tax authorities or lenders to attach policies in order to recover monies from you.