TaxTMI 
TaxTMI 
Any sum received Under Life Insurance Policies (New) Section 92(2)(l)/ (Old) Section 56(2)(xiii) Read with Rule 11UACA
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....e income chargeable to tax under the said section shall be computed in the following manner:- (i) where the sum is received for the first time under the life insurance policy during the tax year (herein referred to as first tax year), the income chargeable to tax in the first tax 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 tax year; and B = the aggregate of the premium paid during the term of the life insurance policy till the date of receipt of the sum in the first tax year that has not been claimed as deduction under any other provision of the Act; and (ii) where the sum is received under the life insurance policy during the tax year subsequent to the first tax year (hereinafter referred to as subsequent tax year), the income chargeable to tax in the subsequent tax year shall be computed in accordance with the formula, - C-D Where, - C = the sum or aggregate of sum received under the life insurance policy during the subsequent tax year; and D = the aggregate of the premium paid d....
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.... ≤ 15% for special policy; and ≤ 10% for other policies; and (B) aggregate of premium for all such policies (in any of the tax years during the term of all of such policies) is ≤ Rs. 2,50,000. Other than unit linked insurance policy:- Premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies. 5. On or after the 1st April, 2023. Unit linked insurance policy:- (a) premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies; and (b) aggregate of premium for all such policies (in any of the tax years during the term of all of such policies) ≤ Rs. 2,50,000. Other than Unit linked insurance policy:- (i) premium to sum assured ratio is ≤ 15% for special policy; and ≤ 10% for other policies; and (ii) aggregate of premium for all such policies (in any of the tax years during the term of all of such policies) is ≤ Rs. 5,00,000. (b) the following sums shall not be eligible for exclusion from total income:-- (i) Any sum received by an individual or HUF f....
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....evelopment Authority Act, 1999; Under Section 56(2)(xiii) of the Income Tax Act, 1961 [ Upto 31.03.2026 ] Any sum received Under Life Insurance Policy - [ New clause added by Finance Act, 2023 w.e.f. 01st April, 2024 ] • where any sum is received, including the amount allocated by way of bonus, at any time during a previous year, under a life insurance policy, other than the sum,- (a) received under a unit linked insurance policy; (b) being the income referred to Section 56(2)(iv), which is not to be excluded from the total income of the previous year in accordance with the provisions of section 10(10D), the sum so 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 ....
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....olicy '"A". Life Insurance Policy A B C Unit Linked Insurance Policy X Y Date of issue 01.04.2021 01.04.2023 01.04.2023 01.04.2023 01.04.2024 Annual premium (Rs) 1,00,000 1,00,000 1,00,000 1,50,000 3,00,000 Sum assured (Rs) 10,00,000 10,00,000 10,00,000 15,00,000 30,00,000 Consideration received on 01.07.2033 6,00,000 6,00,000 Consideration received on maturity as on 01.11.2034 12,00,000 18,00,000 34,00,000 • Taxability as per fifth and seventh proviso to Clause (10D) of section 10 of the Act: • As per the fifth proviso, the surrender value of unit linked insurance policy ''X" and consideration received under unit linked insurance policy "Y" on maturity will be exempt under Clause (10D) of section 10 of the Act since the annual premium does not exceed Rs 2,50,000 during the term of these policies. • Further, the consideration received under the life insurance policy "A" during the previous year 2033-34 shall be exempt u....
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....respect of such policy. • Further the premium paid for such policies shall not be counted for checking Rs 5,00,000 limit for the purposes of sixth and seventh proviso. Computation of income chargeable to tax under clause (xiii) of section 56(2) [ Rule 11UACA of Income Tax Rules, 1962 ] 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 = the aggregate of the premium paid during the term of the life insurance policy till the date of receipt of the sum in the first previous year that has not been claimed as deduction under any ....