TMI BlogAny sum received Under Life Insurance Policies -Section 56(2)(xiii) Read with Rule 11UACAX X X X Extracts X X X X X X X X Extracts X X X X ..... ived 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: (i) w.e.f. assessment year 2024-25, the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t exceed Rs 5,00,000 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 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ] 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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