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:

    Thanks Dhawal for the quick reply.

  2. Dhawal Sharma says:

    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)..

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