Prematurity of LIC

Amount received on maturity

Profit amount is only taxable.

@ nidhi....is there any logic behind it?

No exemption from income tax on the maturity of policies
Taxation, where the premium paid, is more than 10% of the sum assured – Any money received from a life insurance policy, where the premium is more than 10% or 20% of the sum assured as the case may be, is fully taxable.

So whole amount received on maturity is taxable under other sources