What is the taxability of amount received by nominee/legal heir from LIC on death of an individual?

Hema Hema
Answered on February 13,2020

As per Section 10(10D) any sum received by legal heir from LIC including the sum allocated by way of bonus on such policy on death of the individual is exempt from tax other than:

  • Sum received under sub-section (3) of section 80DD; or
  • Sum received under a Keyman insurance policy.