Do I need to pay tax on life insurance maturity amount? | Life insurance policy taxation

Income Tax 1961 Income from Other Sources
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In most cases, the maturity amount from a life insurance policy is tax-free under Section 10(10D) of the Income Tax Act.
However, you may have to pay tax if:

  • The annual premium is more than ₹5 lakh (for policies issued after 1 April 2023), and
  • The policy is not a ULIP or not covering death risk properly.
  • If the maturity amount is taxable, it will be added to your income and taxed as per your income slab.
    To understand which plans are tax-free and compare tax benefits, you can visit *Policybazaar Life Insurance for easy guidance and options.