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Q.

Is amount received on insurance policy maturity taxable ?

Tags: insurance policy, amount received, maturity taxable
Asked by Uncommon Freind, 24 Apr '13 09:18 pm
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Answers (9)

1.

No, it is not taxable
Answered by Anil K Chugh, 24 Apr '13 09:25 pm

 
  
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2.

No
Answered by Ramesh Agarwal, 24 Apr '13 09:19 pm

 
  
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3.

Many of us feel that the benefit amount we receive on the maturity of all life insurance policies is always tax-free. However that is not correct because not all life insurance policies will provide you a tax exemption on the maturity amount. Most of the Life Insurance Policies offer tax benefits on the maturity amount but not all of them are tax-free. There are some conditions which a life insurance policyholder has to fulfil after which the policy availed by him/her is eligible for tax benefits. The proceeds received on maturity of the life insurance policy will be exempted from tax if the following conditions are fulfilled in accordance with

1. The amount has been invested for a period of at least 5 years and has not been withdrawn before that

2. The ratio between Premium and Sum Assured is at least 1:5 in ALL the years and has not been violated even once.

If the above 2 criteria are fulfilled, then the maturity proceeds from the insurance policies are tax free under secti ...more
Source: section 10(10)D of Income tax Act:
Answered by anil garg, 24 Apr '13 10:13 pm

 
  
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4.

Tax is a very critical aspect of insurance planning.In india there are several clauses of tax code related to insurance.The most basic indirect tax clause related to insurance premium which individuals often overlook is that insurance premiums are subject to service tax of 12.4%.The tax codes related to insurance which one should consider while availing an insurance policy. There are some conditions which a insurance policyholder has to fulfil after which the policy availed by him/her is eligible for tax benefits. The proceeds received on maturity of the insurance policy will be exempted from tax if the following conditions are fulfilled in accordance with section 10(10)D of Income tax Act:

1. The amount has been invested for a period of at least 5 years and has not been withdrawn before that

2. The ratio between Premium and Sum Assured is at least 1:5 in All the years and has not been violated even once.

If the above 2 criteria are fulfilled, then the maturity proceeds from ...more
Answered by sachin sahu, 30 May '13 10:23 am

 
  
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5.

No
Answered by Quest, 25 Apr '13 11:04 am

 
  
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6.

Fully tax free
Answered by rajan, 25 Apr '13 05:54 am

 
  
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7.

No g
Answered by wenz, 24 Apr '13 09:29 pm

 
  
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8.

Not taxable
Answered by shuan olarte, 13 May '13 06:21 pm

 
  
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9.

It is not taxable
Answered by goldspot, 24 Apr '13 09:44 pm

 
  
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