TAXABILITY OF STATE INSURANCE MATURITY RECEIPTS BY RAJASTHAN GOVERNMENT EMPLOYEE ON RETIREMENT ?

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Rajasthan government employees' state insurance maturity receipts on retirement are generally exempt from tax under Section 10(10D), provided certain life insurance and premium conditions are met. This exemption is similar to other government retirement benefits like gratuity and provident fund, which are also fully exempt under different sections.

Deepak Jain Salecha

Deepak Jain Salecha (Querist)

02 August 2025 PLEASE ADVICE ON TAXABILITY OF STATE INSURANCE MATURITY RECEIPTS BY RAJASTHAN GOVERNMENT EMPLOYEE ON RETIREMENT ? IF EXEMPT, UNDER WHICH SECTION ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 August 2025 Tax exemptions for state insurance maturity receipts, such as those from Rajasthan government insurance schemes, are generally similar to many other key retirement benefits for government employees, but there are important differences in the exemption sections and their limits:

State Insurance: Maturity Fully exempt (if qualifying) Section 10(10D) Policy must be life insurance and premium conditions apply (e.g., annual premium not exceeding 10% of sum assured for post-2012 policies; otherwise, maturity is taxable).

Gratuity: Fully exempt Section 10(10)(i), (ii) Central/state government employees: fully exempt.
Provident Fund (GPF/EPF): Fully exempt Section 10(11) for GPF, 10(12) for EPF Government employees’ provident fund receipts are fully exempt, subject to service/recognition criteria.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 September 2025 Good Luck...

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