Lic jeevan aastha tax free on maturity?

Jeevan Aastha invested 2009, for Rs. 207,780/-

single premium, Sum Assured = 200,000/-

Basic Sum Assured is 12,00,000/-

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Is this tax free on maturity?  

Section 10-10D talks of premium not exceeding 20% of Sum Assured for tax free maturity.

Which Sum Assured would be taken in the case I have listed above, to know the tax status on maturity?  

If taxable, then what is taxable; the gains (maturity amount - premium) or the full maturity amount?  

Would you also be so kind as to provide an internet link to support your answer?

Thank you so much

Regards

Satish Gupta

Read more at: https://www.caclubindia.com/forum/lic-jeevan-aastha-tax-free-on-maturity--266746.asp#reply

As per the policy info:

A)Death Benefit:

On death during the first policy year: Basic Sum Assured with Guaranteed Addition.(Rs 12 Lakh minimum in your example)
On death during the policy term after first policy year, excluding last policy year: 1/3rd of Basic Sum Assured with Guaranteed Addition. (4 lakh minimum)
On death during last policy year: 1/3rd of Basic Sum Assured with Guaranteed Addition along with loyalty addition, if any (4 lakh minimum)

B) Maturity Benefit

On maturity, the maturity Sum Assured along with Guaranteed Addition and Loyalty Addition, if any, shall be payable.
Maturity Sum Assured shall be 1/6th of Basic Sum Assured. (2 lakh min)

From above wordings, it appears that 12 lakh is basic sum assured only for death in the 1st year. Can you confirm from the agent?

80C (3A)Explanation.—For the purposes of this sub-section, "actual capital sum assured" in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking into account—

 (i)  the value of any premium agreed to be returned; or

 (ii)  any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person.

(So, the minimum amount on happening of the event is Rs 4 Lakh)

In that case, In my opinion, the policy maturity proceeds are taxable as the sum assured for the purpose of 80C or 10(10D) would be 400000.

More views welcome.

Maturity proceeds are taxable as income from other sources. 

Explanation for "Actual capital sum assured" is inserted wef 01.04.2013 and given for Subsection 3A (10% case - ie policy issued after April 2012) and not for SS3 (20% case ie policy issued before Apr 2012).

Hence I feel here in this disussion, policy is issued before Apr 2012 and actual capital SA is to be taken is Basic Sum assured (6L or 12 L) 

Simple interpretation as to Why is policy taken? For death. For what amount insurance is taken Rs 6L/12L.

Exempt under 10(10D) and no TDS u/s 194DA

My view. 
More views welcome