Section 10(10D) → Section 12
Exemption - Life Insurance Proceeds
Quick Answer
Section 10(10D) of the Income Tax Act, 1961 (Exemption - Life Insurance Proceeds) corresponds to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 10(10D)
Provision Summary
Any sum received under a life insurance policy (including bonus) is exempt, subject to premium limits.
Sec 12
Provision Summary
Retained but restricted. High-premium policies (aggregate premium > Rs. 5 Lakhs) remain taxable to prevent HNIs from misusing insurance as a tax-free investment.
Key Changes & Highlights
- Taxability calculated via Capital Gains for policies exceeding the premium threshold.
Related Sections
Frequently Asked Questions
What does Section 10(10D) of the Income Tax Act 1961 deal with?
Section 10(10D) (Exemption - Life Insurance Proceeds) Any sum received under a life insurance policy (including bonus) is exempt, subject to premium limits.
What is the new section number for Section 10(10D) under the Direct Tax Code 2025?
Section 10(10D) of the ITA 1961 maps to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 10(10D) under the new tax code?
Section 10(10D) is marked as "Retained" with status "Modified". Impact: High - Major impact on the life insurance industry.
What are the key changes to Section 10(10D) under DTC 2025?
Taxability calculated via Capital Gains for policies exceeding the premium threshold.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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