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Tax Benefits on Different Types of Life Insurance Policies in India
Section 10(10D): Under Section 10(10D) of The Income Tax Act, 1961, proceeds received by the policyholder or nominee of an insurance policy, including sum assured, surrender values, and bonuses, are exempt from tax, provided premiums ≤10% of sum assured (policies issued on/after April 1, 2012) and ≤₹2.5 lakh/year for ULIPs (issued on/after Feb 1, 2021).
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Tax Benefits of Different Life Insurance Policies
Tax-Free Payouts Under Section 10(10D) : The maturity proceeds, death benefits, and survival benefits received from a life insurance policy are tax-exempt under Section 10(10D), provided the premium does not exceed the prescribed limits. This ensures that your family receives the entire sum assured without any tax deductions.