Page 55 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

 In the case of insurance policies issued on or after the 1st of April,

2012, the deductions are only allowed for so much of the premiums

payable as don’t exceed 10% of the actual capital Sum Assured.

 If the benefit has been claimed under this section, and the policy has

been terminated or annulled within 2 years from the

commencement of the policy, the benefit will be reversed. This is

relevant to all life insurance policies, except ULIPs.

 If the benefit has been claimed under this section, and the ULIP has

been terminated or annulled within 5 years from the

commencement of the ULIP, the benefit will be reversed.

Exemptions:

Section 10 (10D):

 Any amount received under a life insurance policy qualifies for this

deduction. A sum received could be:

 Sum allocated by way of bonus

 Survival benefit

 Maturity benefit

 Surrender value

 Death benefit

 This deduction also applies to proceeds and gains from a ULIP.