Does Term insurances attract income tax to the amount nominees going to receive?

POSTED BY smkalyan ON June 9, 2014 9:17 am COMMENTS (2)

Hi,

Does Term insurances(online) attract income tax to the amount nominees going to receive?

If 1 crore term insurance is taken and unfortunately if the insurer dies, then will nominee receives the entire 1 cr or will tax deducted in that 1 cr. Please confirm.

Thanks

Ram

2 replies on this article “Does Term insurances attract income tax to the amount nominees going to receive?”

  1. smkalyan says:
    June 9, 2014 at 2:31 pm

    Thanks Dhawal for the quick reply.

    Reply
  2. Dhawal Sharma says:
    June 9, 2014 at 12:31 pm

    In case of unfortunate demise of the policyholder, whatever is the SUM ASSURED under the policy (Term Plan or any other plan) will be tax free in the hands of Nominee under section 10 (10d)..

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.