Taxablity of GSLI under Income Tax

Yes — the Group Savings Linked Insurance  amount received by a Central Government employee at the time of retirement is exempt from income tax. It is treated as an insurance payout, The exemption is available under Section 10(10D) of the Income Tax Act, 1961, which covers amounts received under life insurance policies.

If “GSLI” means the Central Government Employees’ Group Savings Linked Insurance Scheme (CGEGIS), the lump-sum amount received on retirement is generally exempt from income tax under section 10(10D) of the Income-tax Act, 1961. The exemption applies to the insurance proceeds; the scheme’s savings-fund component is also generally treated as exempt on payment under the applicable tax treatment for CGEGIS. For support, refer to section 10(10D) and the CGEGIS rules/retirement payment statement; confirm the payment is under CGEGIS, as other group insurance schemes may have different treatment.

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