Release of insurance policies - Income Tax - 480/1987

Release of insurance policies Circular No. 480 Dated 6/2/1987 To All Commissioners of Income-tax, All Controllers of Estate Duty. Sir, Subject: Release of insurance policies. In Board Circular No. 424 dated 9-7-1985,* it has been clarified that with the discontinuance of estate duty in cases of deaths occurring on or after 16-3-1985, the Life Insurance Corporation Policies taken for the purpose of payment of estate duty may be reassigned in favour of policyholders. Though a number of policies have been thus reassigned, a large number are still pending for reassignment. The matter has been considered by the Board in consultation with the Deptt. of Insurance and it has been decided that the policies still pending for reassignment may be handed over to the LIC for further transmission to the policyholders. For this purpose, the following procedure is to be adopted:- (i) The policies be bifurcated in two batches, namely:- (a) Those taken since inception for purposes of payment of estate duty. (b) Policies which have been subsequently assigned to the President of India for the purpose of payment of estate duty. (ii) The policies at (i)(a) above be handed over to LIC and a permanent record be maintained. (iii) Policies mentioned in (i)(b) above be assigned by the Controller of Estate Duty to the assured by the execution of proper reassignment and in cases CED should also be give a notice of reassignment to LIC. If the number of such policies is too large, notices of reassignment of all policies can be done together and the numbers of the policies may be mentioned in a list which will form a part of the notice of reassignment. The details of the form of reassignment, etc., can be obtained from the concerned divisional office of LIC. All Controllers of Estate Duty are requested to take action immediately and complete the reassignment at the latest by 31-3-1987. (Sd.) A.K. Singh, Under Secretary, Central Board of Direct Taxes. * See [1985] 155 ITR (St.) 6.