I bought PNB Metlife Family Income Plan (Traditional) in June 2006, with Premium Payment ₹7152 for 10 Years and sum assured of ₹4 lakh. The Policy is matured now, how will this amount be taxed?
For a traditional insurance policy, the maturity proceeds are tax free under Section 10(10D). The maturity proceeds of your PNB Met life policy will be tax free if the sum assured of your policy is more than 5 times the annual premium.
Maturity proceeds of insurance policies are tax free for:
- All policies issued up to 31.03.2003
- policies issued between 01.04.2003 to 31.03.2012 if sum assured is more than five times the annual premium
- policies issued from 01.04.2012 and onwards if sum assured is more than 10 times the annual premium