LIC Maturity Amt is LTCG ? We claim Exemption up to 1 lac

This discussion clarifies whether a LIC policy maturity amount is considered Long Term Capital Gains (LTCG) and eligible for exemption up to Rs. 1 lac. The consensus is that for a standard LIC policy (not a ULIP with a premium of Rs. 2.5 lakhs or more), the additional amount received on maturity is taxable under the 'Income from Other Sources' head. Therefore, the Rs. 1 lac exemption typically applies to ULIP redemptions under specific conditions.