26 July 2011
Receipts of maturity of policy is not taxable U/s 10(10D).
You have to just confirm whether the policy is of not 5-6 years premium paying term.
In case premium paid exceeds 20% of sum assured, say for a sum assured of Rs 100000/- if premium paid is 21000/- per annum, then the proceeds from LIC will be taxable, otherwise not.
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