Lic policy maturity - tax excempted or not

Taxable receipts shall be 1.Any Sum received under Keyman Insurance Policy 2.Any sum received from policy u/s.80DD(3) or u/s.80DDA(3) and other policies in which

3.For Policies issued before 01.04.2012,

If premium payable or paid exceeds 20% of actual capital sum assured then entire receipts will be taxable in the hands of Receipient. The above condition will not apply in case where receipt is on account of death of policy holder.

4.For Policies issued on or after 01.04.2012, 

If premium payable or paid exceeds 10% of actual capital sum assured then entire receipts will be taxable in the hands of Receipient. The above condition will not apply in cases where receipt is on account of death of policy holder. For Policies issued on or after 01.04.2013 10% had replaced by 15% for  policies taken on persons who are eligible to claim deduction u/s.80U and 80DDB

So, Sum received under Key man insurance policy on death of Key Man is fully taxable irrespective of % of Premium and Condition for exempting receipts on account of death of Policy holder does not apply to receipts from policy u/s.80DD(3) or u/s.80DDA and Keyman Insurance Policy. For normal policies premium and cause for receipt is criteria while deciding whether taxable or not (i.e wether exempt u/s.10(10D))

While calculating % of Premium, Actual capital sum assured does not include sum allocated by way of Bonus and return of premius paid earlier but once % calculated exceeds 20% or 15% or 10% as the case may be then entire receipts including sum allocated by way of Bonus and return of premiuns paid earlier are fully taxable. 

I think some sum assured may not be Rs.1Lakh and Rs.7K is per year. Is it Right?

it is sir - kindly refer attachment. 

Premium paid you for any year does not exceed 20% (6.96% approx..) of Actual capital sum assured. Therefore LIC Receipts are fully exempt u/s.10(10D). 

Thanks for the clarification.