LIC Policy Expire

This discussion clarifies the taxability of money received from an LIC policy after its expiry, particularly when premiums were paid in previous years. The key factor determining tax exemption is the premium amount relative to the sum assured. Amounts received on maturity or as bonus are generally exempt from Income Tax under Section 10(10D) if premiums do not exceed 10% (for policies post-April 2012) or 20% (for policies pre-April 2012) of the sum assured.