Life Insurance Money Back
This query is : Resolved
08 December 2007
amount received on money back policy is taxable or tax free under section 10 (10D)? The person insured is alive.
08 December 2007
Hi TKandharia,
Section 10(10D) is read as under:-
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 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:
shall be exempt from tax.
Provided that the provisions of this sub-clause shall not apply to any sum received on the death of a person:
Thus in your case, the said premuim is exempt. Treat it as a capital receipt.
Rgds/
Vineet
Section 10(10D) is read as under:-
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 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:
shall be exempt from tax.
Provided that the provisions of this sub-clause shall not apply to any sum received on the death of a person:
Thus in your case, the said premuim is exempt. Treat it as a capital receipt.
Rgds/
Vineet
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- FORM 26A APPLICABILITY
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
