As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax. However, following receipts would be subject to tax:
Any sum received under sub-section (3) of section 80DD; or
Any sum received under Keyman insurance policy; or
Any sum received in respect of policies issued on or after April 1st, 2003, in respect of which the amount of premium paid on such policy in any financial year exceeds 20% (10% in respect of policy taken on or after 1st April, 2012) of the actual capital sum assured; or
Any sum received for insurance on life of *specified person (issued on or after April 1st 2013) in respect of which the amount of premium exceeds 15% of the actual capital sum assured.
* Any person who is –
i) A person with disability or severe disability specified under section 80U; or
ii) suffering from disease or ailment as specified in the rule made under section 80DDB.
Following points should be noted in this regard:
Exemption is available only in respect of amount received from life insurance policy.
Exemption under section 10(10D) is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.
Amount received on the death of the person will continue to be exempt without any condition.
Pretty! This was a really wonderful article. Thanks for providing this info.
I blog frequently and I genuinely thank you for your content. Your article has really peaked my interest. I’m going to take a note of your website and keep checking for new information about once per week. I opted in for your RSS feed too.
Thank you for sharing knowledge
Excellent items from you, man. I’ve understand your stuff previous to and you’re simply extremely fantastic.
I really like what you’ve received here, certainly like what you’re saying and
the way through which you say it. You make it entertaining and you
still care for to keep it sensible. I can’t wait to learn much more from you.
That is actually a great web site.