Taarakesh,
Although the question is very old it is still very valid, I am answering this question for the benefit of other readers who are looking for clarification on this subject.
1. If a resident pays life insurance premium(<20% of Sum Assured) paid to LIC International(i.e in a foreign country) deductable u/s 80C??
No the premiums paid to LIC International Plans are not deductible under section 80C.
2. Also is such redemption amount, received in India on its maturity, exempt u/s 10(10D)??
Maturity or claim proceeds of all International plans are exempt from Tax as the premiums paid into such plans are from income earned abroad while being a non-resident. The funds should be received in RFC account maintained for the purpose of repatriating funds from abroad.
3. Also let us what is the treatment if the sum assured is >20%, which was invested before 2003.
This provision only applies to resident Indians and does not apply to international policies availed by non-residents.
Thanks,
Damodhar Mata
CAclubindia
