Taxablity of LIC matured amount

The taxability of a matured LIC amount depends on specific conditions related to the policy's issue date and the premium paid. Generally, maturity and bonus amounts are exempt under Section 10(10D). However, if the premium paid exceeds 10% (for policies post-April 2012) or 20% (for policies pre-April 2012) of the sum assured, the entire amount may become taxable according to your individual tax slab.