Tax provision on maturity payment received from PNB Met life policy

Save Share

This query is : Resolved

Quick Summary

For a senior citizen receiving a maturity payment from a PNB Met Life policy, the key factor for taxability is whether the policy meets the conditions under Section 10(10D) of the Income Tax Act. If the policy was issued after April 1st, 2003, and premiums paid do not exceed 10% of the sum assured (for policies post-April 1st, 2012), the maturity amount is generally tax-exempt. This exemption applies regardless of whether the policyholder is under the new or old tax regime. It is advisable to verify the policy's sum assured and premium details to confirm eligibility for this tax exemption.

Yugal Verma

Yugal Verma (Querist)
Follow

14 February 2024 Respected Sir,
My client is a senior citizen as per income tax act. He has received the amount form PNB on maturity of policy named PNB Met life policy.
So I want to know that the amount received by him will be taxable or not.
He chose new tax regime

RAJA P M

RAJA P M (Expert)
Follow

14 February 2024 If The said insurance as EEE then it's not taxable in the hand of insured person....

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

13 August 2025 Taxability of Maturity Amount from Life Insurance Policy:
Section 10(10D) provides exemption on maturity proceeds received from a life insurance policy.
Conditions for exemption:
The policy should be issued on or after 1st April 2003.
The premium paid should not exceed 10% of the sum assured for policies issued after 1st April 2012 (if premium exceeds this limit, exemption is not available).
The amount received on maturity or surrender or on death of the insured is exempt from income tax.
If the policy meets the above conditions, the maturity amount is fully exempt from tax, regardless of whether the policyholder is under the old or new tax regime.
If these conditions are not met (e.g., high premium), then maturity amount will be taxable as income from other sources.
For your senior citizen client:
If the PNB Met Life policy satisfies the above exemption conditions, the maturity amount received is not taxable.
This is independent of whether the client has opted for new or old tax regime.
Suggestion:
Check the policy details — sum assured and premium amounts.
Confirm the policy issuance date.
If conditions are met, no tax on maturity proceeds.
If conditions are not met, maturity proceeds are taxable under "Income from Other Sources."

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now