On maturity of normal Life Insurance Policy the sum assured is not taxable. What in case of money back policies when the return starts coming in do they become taxable?
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On maturity of normal Life Insurance Policy the sum assured is not taxable. What in case of money back policies when the return starts coming in do they become taxable?
Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy is exempted from income-tax.
Other than pension plans all life insurance proceed are exempted from Income Tax.Quote:
Originally Posted by anurag
Yes. life insurance are exempted from Tax.