Redemption for life insurence

Any amount received on redemption of life insurance policies is not chargeable to tax as per section 10(10D) of Income Tax Act,1961 if the premium paid in any of the year during the term of policy does not exceeds 20% of the actual sum assured by the policy. However this condition is not applicable in case of redemption of policy on the death of the person.

In short, except in the case of death of a person, if the premium paid every year is less than 20% of sum assured then the amount is exempt on redemption. & in case of death the whole amount is exempt whetehr the premium paid is less than or more than 20% of sum assured.

Yes dividend is exempt u/s 10(34) except dividend from foreign company

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