Any sum received Under Life Insurance Policies -Section 56(2)(xiii) Read with Rule 11UACA

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....o received as exceeds the aggregate of the premium paid, during the term of such life insurance policy, and not claimed as deduction under any other provision of this Act, computed in such manner as may be prescribed. • As per Circular No. 15/2023 dated 16, August, 2023, Clause (10D) of section 10 of the Income-tax Act, 1961 (the Act) provides for income-tax exemption on any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy subject to certain exclusions. • I. amended Clause (10D) of section 10 of the Act by substituting the existing sixth proviso with the new sixth, seventh and eighth provisos to, inter-alia, provide that: ....

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....ple:-  The assessee has the following life insurance policies and unit linked insurance policies (ULIPs) all of which satisfy all the conditions laid down in Clause (10D) of section 10 of the Act (other than the conditions provided under the fourth, fifth, sixth and seventh provisos of the said clause, applicability whereof is being explained in the example). The assessee did not receive any consideration under any other eligible life insurance policies or unit liked insurance policies in earlier previous years preceding the previous year 2033-34 other than under unit liked insurance policy "X" and under life insurance policy '"A". Life Insurance Policy     A B C Unit Linked Insurance P....

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....000 in any of the previous years during the term of these policies. The consideration for life insurance policy "B" is not exempt since sum of premium of life insurance policies "A", "B" and "C" exceeds Rs 5,00,000 during the term of these policies. Life insurance policy "C" is preferred over life insurance policy "B" being more beneficial to the assessee. However, if the consideration from life insurance policy "A" was not claimed as exempt in previous year 2033-34, then the consideration from both the life insurance policies "B" and "C" shall be exempt under Clause (10D) of section 10 of the Act. • Clarification on GST Component • it is also clarified that the premium payable/ aggregate premium payable ....

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....on 56(2) [ Rule 11UACA of Income Tax Rules ] where any person receives at any time during any previous year any sum under a life insurance policy, then, the income chargeable to tax under the section 56(2)(xiii) during the previous year in which such sum is received shall be computed in the following manner, namely: - (i) where the sum is received for the first time under the life insurance policy during the previous year (hereinafter referred to as first previous year), the income chargeable to tax in the first previous year shall be computed in accordance with the formula,- A-B where, - A = the sum or aggregate of sum received under the life insurance policy during the first previous year; and B =....