section 10(10D), any amount received under a life insurance policy, including
bonus is exempt from tax. However, following receipts would be subject to tax:
received under sub-section (3) of section 80DD; or
received under Keyman insurance policy; or
received in respect of policies issued on or after April 1st, 2003, in respect
of which the amount of premium paid on such policy in any financial year
exceeds 20% (10% in respect of policy taken on or after 1st April, 2012) of the
actual capital sum assured; or
received for insurance on life of *specified person (issued on or after April
1st 2013) in respect of which the amount of premium exceeds 15% of the actual
capital sum assured.
* Any person
who is –
i) A person
with disability or severe disability specified under section 80U; or
ii) suffering from disease or ailment as specified in the rule made under
points should be noted in this regard:
available only in respect of amount received from life insurance policy.
under section 10(10D) is unconditionally available in respect of sum received
for a policy which is issued on or before March 31, 2003.
received on the death of the person will continue to be exempt without any