Maturity of Life Insurance Policy – Whether Taxable or Not?

• August 11, 2019
• CA Chandan Agarwal's Office

Any amount received from any life insurance companies is totally tax free is one of the most common presumptions of the taxpayers.  This is not entirely correct.

Amount received from life insurance companies (including bonus) is tax free u/s 10(10D) of the Income Tax Act- 1961, except following receipt:

(a) any sum received u/s 80DD(3) or u/s 80DDA(3); or

(b) any sum received under a Keyman insurance policy; or

(c) Any sum received in respect of any policy issued,

Read more on: https://taxguru.in/income-tax/maturity-life-insurance-policy-taxable-not.html