Written By: Mobin
– It’s a Keyman policy (for companies). Premiums exceeded 20% (2003–2012) or 10% (post-2012) of sum assured.
Yes! Under Section 10(10D), death claims are fully tax-free. Whether ₹25L or ₹1Cr, nominees pay zero tax on the received amount.
Term insurance claims are always tax-free under 10(10D). A major relief for families relying on death benefits.
No TDS on death claims usually. But 5% may be deducted if PAN is missing or policy isn’t exempt.
Tax-free for all: spouse, parents, or kids. Relationship doesn’t matter—only the death claim does.
Show claim as "Exempt Income" in tax returns. Keeps records clean and avoids future inquiries.
Keep policy docs handy. For post-2012 policies, ensure premiums ≤10% of sum assured to retain tax benefits.