All life insurance policies that are not eligible for tax exemption under Section 10 (10D).
As per the new section (effective from 1st October 2014), if the policy proceeds are not eligible for exemption under Section 10(10D) of the Act and your policy proceeds for a year exceeds Rs. 1 lakh, then the tax deductions will be at 2% -If Pan registered (Otherwise at 20% )
Insurance policy receipts that are not eligible for tax exemption under Section 10 (10D) will be taxed as normal income at the individual’s slab rate.
To be eligible for exemption, the premium paid should not be more than 10 per cent of the sum assured under the policy if it’s a policy issued after April 1, 2012. If it’s a policy issued before April 1, 2012, the premium should not be more than 20 per cent of the sum assured.
In an unfortunate event ofdeath of the insured the proceeds or the amount received towards the claim from the policy by the family members is totally exempt from tax under section 10 of Income tax Act.
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(29 Points)
Replied 04 March 2015
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(29 Points)
Replied 06 March 2015
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