​​​​​As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax. However, following receipts would be subject to tax:

(A) Any sum received under sub-section (3) of section 80DD; or

(B)Any sum received under Keyman insurance policy; or

(C)Any sum received in respect of policies issued on or after April 1^st, 2003, in respect of which the amount of premium paid on such policy in any financial year exceeds 20% (10% in respect of policy taken on or after 1^st April, 2012) of the actual capital sum assured; or

(D)Any sum received for insurance on life of *specified person (issued on or after April 1^st 2013) in respect of which the amount of premium exceeds 15% of the actual capital sum assured.

* Any person who is –

i)  A person with disability or severe disability specified under section 80U​; or

ii) suffering from disease or ailment  as specified in the rule made under section 80DDB.

(E) Any sum received from an life insurance policy (other than a unit linked insurance policy issued on or after 01-04-2024 if the amount of premium payable for any previous years during the term of policy exceeds Rs. 5 lakh.

 

Following points should be noted in this regard:

 

 

•   Exemption is available only in respect of amount received from life insurance policy.
•   Exemption under section 10(10D)​ is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.
• Amount received on the death of the person will continue to be exempt without any condition along with the life insurance policy issued by IFSC insurance office including the amount given as bonus.​