1.Any death claim received under a life Insurance policy is fully exempt from tax, provided:
a) policy has not been issued under section 80dd(3)
b) policy has not been issued a Key men policy.
2. Any sum received other than death claim under a life insurance policy, including the sum allocated by way of bonus one such policy is exempt from text, provided:
a) policy has not been issued under section 80dd (3) or,
b) policy has not been issued as a key man insurance policy,
c) policy has been issued 31st March 2003 or
d) policy has been issued between 1st April 2003 and 31st March 2012 and the premium paid in any of the Year during the term of the policy does not exceed 20% of the actual capital sum assured or
e) policy has been issued on or after april 1st 2012 and the premium paid in any of the Year during the term of the policy does not exceed 10% of the actual capital sum assured.
Where the policy issued on or after the first April 2013 is for insurance on life of any person ,
who is :
– a person with disability for a person with severe disability as referred to in section 80u or
– suffering from disease or ailment as specified in the rule under section 80DDB.
Exemption under section shall be available payable in any of the years is not more than 15% of the actual capital sum assured.