Yes, When the premium paid on a policy exceeds 10% of the sum assured for policies issued after 1 April 2012, and 20% of the sum assured for policies issued before 1 April 2012, any amount received on maturity of a life insurance policy is fully taxable. In other case it's exempt.
Yes, It's required to be matched But in case of maturity of policy 26AS suppose to show total maturity amount where as taxable income is Maturity amount less all Premium paid, you are required to show that in your Income, there is no need to match if it's nature before 01.09.2019 than its the case.
Full maturity or surrender value is taxable without deducting premiums paid under the policy. Because premium up to 10% of capital sum assured is assumed to be taken under 80c in the year of premium payment
"Maturity and bonus amount for insurance is exempt under Sec 10 (10D). However, when the premium paid on the policy exceed 10% of the sum assured for policies issued after 1 April 2012 and 20% of sum assured for policies issued before 1 April 2012- it is taxable fully as per the person's tax slab, Thus there is no escape from tax on insurance proceeds if the premium paid exceeds 20% or 10% or 15% of the sum assured. As per Union Budget 2019 wef 01.09.2019 tax at the rate of 5% will be deducted on net income i.e. maturity amount minus all premiums paid thus only the differential amount is taxable
I doubt for TDs purpose only it is net sum assured but for computation in the return full proceeds is taxed. The amount gets reflected in OS schedule from forn 26AS