Tax on proceeds of insurance policy taken abroad

Ashish Shah (Senior General Manager) (58 Points)

26 June 2012  

Hello everyone,

I have a question about tax treatment on Proceeds of  Life Insurance policy taken aborad.

I had taken one Life Insurance Policy in Germany long back. (Say about 15 years back). The premium was paid in cash till date. (Nominal premium of about Euro 800 per year) This amount was not reflected in any of my Income tax return.

Now, the said policy is due (endowment policy) & I am expecting the proceeds soon.

Can you please let me know if this amount is taxable? (Normally, proceeds of Life Insurance policy is exempted under Section 10. But , in this case, the proceeds are expected from Germany against a policy taken there.

Thanks

Ashish M Shah