Key man insurance policy - Taxability of the sums received on ...

Are Keyman Insurance Maturity Proceeds Taxable? Tribunal Overturns Tax Addition, Grants Exemption Under Income Tax Act.

February 26, 2024

Case Laws     Income Tax     AT

Key man insurance policy - Taxability of the sums received on maturity of life insurance policy - Assessee claimed it as exempt income u/s 10(10D) - It was contended that the proprietorship concern was dissolved and the assessee purchased the Keyman Insurance policy after paying a surrender value - The CIT(A) upheld the addition made by the Assessing Officer under section 28(vi) of the Act - The ITAT held that the authorities were not justified in denying the benefit of exemption to the assessee and directed the AO to delete the addition.

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