Life Insurance policy: NON Indian Company purchased in 1994
14 July 2020
In 1994, I used to live abroad and bought a Life Insurance Policy with an European Company. It was a one time premium payment with no premiums/costs paid thereafter. The ratio of premium amount paid to assured sum is 27% (in Euro terms) and about 12% (in INR terms if payment and proceeds are converted at 1994 & current ROEs respectively). I am a resident tax payer in India now having lived here for about 12 years.
Since the policy was bought before ratio limitations were introduced in 2003 and since 10(10D) does not specify that policy PROCEEDS has to be from an Indian Insurance company (unlike for 80C for availing deduction), I am assuming that the proceeds on maturity will be treated as tax exempt.
Can someone please confirm my assumption / understanding. Thanks in advance.