Page 56 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

 The policy proceeds will be taxable under the following

circumstances:

 Payouts on annuity or pension plans.

 Group life insurance plans sponsored by employers.

 Policies bought between the 1st of April 2003 and the 31st of

March 2012, whose premium in any year is more than 20% of the

Sum Insured.

 Policies bought after 1st April 2012, if the premium in any year is

more than 10% of the Sum Insured.

 Policies bought after 1st April 2013 for disabled people or those

suffering from ailments as under Section 80DDB, if premiums on

these policies are more than 15% of the Sum Assured.

The conditions above do not apply to death claims, or any amount

received on the death of the life insured.

 There is no cap on maximum deduction allowed under Section 10

(10D).

* The above data is taken from the Income Tax Act, 1961, and tax laws

are subject to change. Please check the latest information of tax saving

instruments under the abovementioned sections before making any

financial decisions. Check with your insurance provider on the tax