Manual - Exempted Income u/s 10 - Income Specific

Any sum received under a life insurance policy shall be fully exempted in following cases :

1. If any sum received on insurance of a dependent handicapped Section 80DD(3)

2. Any sum received under a Key man insurance policy

3. Any sum received under an insurance policy issued on or after 1-4-2003 but before 1-4-2012 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured.

4. Any sum received under an insurance policy issued on or after 1-4-2012 in respect of which the premium payable for any of the years during the term of the polcy exceeds 10% of the actual capital sum assured.

Note: Any sum received under (3) & (5)  shall be fully exempt if such sum is received on the death of the person.