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exemption under section 10(10D)

Bhavika Nandani (consultant) (33 Points)

17 July 2018

Hi all, I have Taken SBI smart money back policy gold. As per the policy,- sum assured 370000. I received survival benefit of 74000 at the end of 3rd year. Again this benefit will be received at the end of 6th year.
Please let me Know if the benefit amount received at the end of 3rd year can be claimed as exemption under section 10(10D)? if no under which section exemy can be availed?

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195613 Points)
Replied 17 July 2018

What is the premium amount, frequency & period of policy?

Bhavika Nandani (consultant) (33 Points)
Replied 17 July 2018

premium amount is 40033 p.a
policy period is 12 years

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195613 Points)
Replied 17 July 2018

Its taxable..... [inference Section 10(10D)(d)].

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Srinivasa Ganesh (Article Assistant) (456 Points)
Replied 17 July 2018

First of all money back policy is a life insurance policy. so any sum including bonus received a life insurance policy is exempt under 10(10D).
subject to conditions that premium paid at any of the years during the policy period should not exceed the specified limit of minimum capital sum assured.

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Bhavika Nandani (consultant) (33 Points)
Replied 24 July 2018

Hi, so in my case 74000 received which is 20% of sum assured will be taxable , since premium paid of 40033 exceeds 10% of sum assured that is 370000. Is my understanding correct?

Also if I receive 20% of sum assured later at the end of 6th year, 9th year, 12th year are all taxable?