Thursday, September 1, 2016

Maturity proceeds under section 10

Maturity benefits received including bonus on the death of the insured person is tax free in the hands of recipient. Any maturity benefits including bonus received by the insured person himself are also exempt from tax.

But maturity proceeds will not be exempt from tax in the following cases –
any sum received under a Keyman insurance policy
any sum received under an insurance policy issued on or after the 1st day of April, 2003 but on or before the 31st day of March, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured. However in case of death of insurance person such amount is exempt from tax even if this conditions doesn’t satisfies.
any sum received under an insurance policy issued on or after the 1st day of April, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds ten per cent of the actual capital sum assured.However in case of death of insurance person such amount is exempt from tax even if this conditions doesn’t satisfies.

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