Insurance ernings taxable or not

This query is : Resolved

balasundaram (Querist)
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25 June 2008 1)I have been paying ever year
Rs. 20,000/- for reliance insurance
2)Three years locking period after three years
3) I am an income tax assessee (salary income 35000000/-p.a)

If i will earn Rs. 120000/- after three years

If any tax liability on margin earnings

And please explain U/s. 10(10D) of IT Act
Is applicable in my case

thanks & regards.
balu

Shekar

Shekar (Expert)
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26 June 2008 Hi...

Going by Information provided by u...

U can get Deduction u/s 80C for Life insurance premium paid (Subject to restriction of 20% of sum assured,if the premium is higher than 20% of sum assured)

And u/s 10(10D) U can get deduction on amount plus bonus recieved on Maturity of Life Insurance ploicy.But if any one or more premium paid exceeds 20% of sum assured then the entire amount is taxable...