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Amount received from insurance policy on death

Neha sharma (-) (1257 Points)

28 September 2015

If the wife received any amount from the Insurance company on death of the husband, would such an amount be chargeable to any Income Tax?

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4 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 28 September 2015

As per section 10(10D), any amount received under a life insurance policy on death of the person is exempt from tax without any condition.

Hence, insurance claim received by wife on death of her husband is not taxable.

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CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 28 September 2015

Please refer 10(10D). Whether the policy amount is exempted or not depends on the premium amount. Whether it's on the death of the policy holder or not is irrelevant.

Deepak Gupta (CA Student) (15922 Points)
Replied 28 September 2015

In case of death of the person, premium condition is N.A.

"(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 sum 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 but on or before the 31st day of March, 2012 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; or

(d) any sum received under an insurance policy issued on or after the 1st day of April, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds ten per cent of the actual capital sum assured:

Provided that the provisions of sub-clauses (c) and (d) shall not apply to any sum received on the death of a person:

............"