Amount Received From Life Insurance Policies

As per section 10(10D), any sum received on life insurance policy (including bonus) is not chargeable to tax. Exemption is, however, not available in respect of the amount received on the following policies -

a. any sum received under section 80DD (3) or 80DDA (3).
b. any sum received under a Key man insurance policy.
c. any sum received under an insurance policy (issued after March 31, 2003) in respect of which the premium payable for any of the years during the term of policy, exceeds 20 per cent of the actual sum assured. In respect of (c) (supra) the following points should be noted -
1. Any sum received under such policy on the death of a person shall continue to be exempt.
2. The value of any premiums agreed to be returned or of any benefit by way of bonus or otherwise, over and above the sum actually assured, which is received 26 under the policy by any person, shall not be taken into account for the purpose of calculating the actual capital sum assured under this clause.

Cnergyis Infotech India Pvt Ltd

205, Linkway Estate,
Near Chincholi Fire Station / Mindspace,
Above ICICI Bank, Link Road, Malad (West)
Mumbai 400 064, Maharastra India
Phone - 1800 233 6504