17 June 2009
Hi, Maturity received in LIC Scheme is Tax Free under section 10-10D of Income Tax Act subject to some conditions in the section reproduced below:
(10D) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than-
(a) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA; or
(b) any sim received under a Keyman insurance policy;or
(c) any sum received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured:
Provided that the provisions of this sub-clause shall not apply to any sum received on the death of a person:
Provided further that for the purpose of calculating the actual capital sum assured under this sub-clause, effect shall be given to the Explanation to sub-section (2A) of section 88.
Explanation.-For the purposes of this clause, "Keyman insurance policy" means a life insurance policy taken by a person on the life of another person who is or was the employee of the first-mentioned person or is or was connected in any manner whatsoever with the business of the first-mentioned person;
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