MR. A RECEIVED MATURED INSURANCE POLICY TREATED AS INVESTMEMT
1) WHETHER THIS IS TAXABLE OR NOT ? IF YES, THIS NEED TO BE TREAT AS INCOME UNDER OTHER SOURCES OR CAPITAL GAIN ?
2 Replies
CA Puja Sharma
(Chartered Accountant)
(5010 Points)
Replied 22 January 2022
The maturity proceeds of a life insurance policy are exempted us/ 10(10D) of Income Tax Act, 1961 provided the premium paid in respect of the life insurance policy does not exceed 10% of the sum assured for any year during the premium paying term for the policies issued after 01-04-2012.
rama krishnan
(12239 Points)
Replied 23 January 2022
INCOME TAX ON MATURITY OF LIFE INSURANCE POLICY
1. Policy issued on Any Date before 01/04/2003 -
Claims including allocated bonus paid to the nominee in case of death of the policyholder is
100% Exempted from Tax
2. Life Insurance policy issued on or after 01-04-2003 but on or before 31-03-2012 -
If Annual Premium exceeds 20% of actual sum assured -
Maturity proceeds/ surrender value received shall be taxable.
3. Life Insurance policy issued on or after 01-04-2003 but on or before 31-03-2012
- if Annual Premium up to 20% of the actual sum assured -
100% exempted from tax
4. Life Insurance Policy issued on or after 01-04-2012 - if
Annual Premium exceeds 10% of actual sum assured -
Maturity proceeds/ surrender value received shall be taxable.
5. Life Insurance Policy issued on or after 01-04-2012 - if
Annual Premium paid up to 10% of the actual sum assured -
100% exempted from tax
6. Life Insurance Policy issued on or after 01-04-2013 for an insured person who is suffering from a severe disability or disease specified in section 80U or section 80DDB of the Income Tax Act
If Annual Premium exceeds 15% of actual sum assured
Maturity proceeds/ surrender value received shall be taxable.
1. Policy issued on Any Date before 01/04/2003 -
Claims including allocated bonus paid to the nominee in case of death of the policyholder is
100% Exempted from Tax
2. Life Insurance policy issued on or after 01-04-2003 but on or before 31-03-2012 -
If Annual Premium exceeds 20% of actual sum assured -
Maturity proceeds/ surrender value received shall be taxable.
3. Life Insurance policy issued on or after 01-04-2003 but on or before 31-03-2012
- if Annual Premium up to 20% of the actual sum assured -
100% exempted from tax
4. Life Insurance Policy issued on or after 01-04-2012 - if
Annual Premium exceeds 10% of actual sum assured -
Maturity proceeds/ surrender value received shall be taxable.
5. Life Insurance Policy issued on or after 01-04-2012 - if
Annual Premium paid up to 10% of the actual sum assured -
100% exempted from tax
6. Life Insurance Policy issued on or after 01-04-2013 for an insured person who is suffering from a severe disability or disease specified in section 80U or section 80DDB of the Income Tax Act
If Annual Premium exceeds 15% of actual sum assured
Maturity proceeds/ surrender value received shall be taxable.
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