08 May 2009
We have taken a life Insurance policy of rs 100000. we have made payment of Rs 25000 as premium which accounts for more than 25 Percent of the policy amt. The policy amt has matured and we have received the amt Will full 100000 will be taxable Or rs 75000(100000-25000) wil be taxable??? The premium which we have paid will be allowed as deduction or not??? Section 10(10)(D) says that if the premium amt paid is less than 20 Percent of the the policy amt then the whole amt received will be tax free Plesse answer this question fast
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