Any sum received under a Life Insurance Policy [Section 10(10D)]
Any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, is wholly exempt from tax. However, the following sum received are not exempt under this section:
any sum received from a policy under section 80DD(3) or section 80DDA(3); or
any sum received under a Keyman Insurance Policy; or
any sum received, under an insurance policy issued on or after 1.4.2003 but on or before 31.3.2012 in respect of which the premium payable for any of the years during the terms of the policy exceeds 20% of the actual capital sum assured. However, such sum received on the death of a person shall be exempt; or
any sum received under an insurance policy issued on or after 1.4.2012 in respect of which the premium payable for any of the years during the terms of the policy exceeds 10% of actual capital sum assumed; or
any sum received under an insurance policy issued on or after 1.4.2013 for insurance on the life of any person, who is
a person with disability or a person with severe disability as referred to in section 80U; or
suffering from disease or ailment as specified in the rules made under section 80DDB in respect of which the premium payable for any of the years during the terms of policy exceeds 15% of the actual capital sum assumed.
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