Taxability on Foreclosure of Life Insurance Policy

I am 70 year old as on date. Resident Individual.
Only source of Income is Pension of Rs 10000 monthly.

I had take a Life Insurance Policy of Rs 21,00,000 on 21-06-2019.
Annual Installment Premium Rs 2,10,000.

I paid Installment for TWO policy terms, till 21-06-2021 totaling a premium of Rs 4,20,000 in TWO years.
Then I stopped paying premium completely.
But I did not Surrender the Policy.
The Policy was just in an Inactive state for 3 years.

The company has a Lock-In-Period of 5 Years.

On 21-06-2024 the Lock-In-Period ended. The company foreclosed the policy and sent me a statement that I will receive Rs 6,03,038.3.

Will Sec 10(10D) and Sec 194DA (TDS) be applicable on this amount?

Please Guide.
Thank You.

Can You Please Guide.

Thank You



In your case, as the annual premium paid does not exceed 10% of the sum assured, the maturity amount will be exempted u/s 10 (10D).


Thank You for your response.
Relieved on conformation.