# Life Insurance Policy Proceeds (Other than ULIP & Keyman) — Section 10(10D) & IFOS
## General Rule
Amount received under a Life Insurance Policy (LIP) other than ULIP and Keyman Insurance Policy is taxable under IFOS if it is NOT exempt under Section 10(10D).
## Exemption Under Section 10(10D)
Maturity proceeds are exempt EXCEPT in the following cases:
### Case (i) — Premium-to-Sum Assured Ratio
If the annual premium paid exceeds the following percentage of sum assured, the proceeds are taxable:
| Date of Policy | Premium Limit |
|---|---|
| Issued before 1.4.2012 | 20% of sum assured |
| Issued between 1.4.2012 to 31.3.2013 | 10% of sum assured |
| Issued on or after 1.4.2013 | 10% (normal person) / 15% (disabled person) |
### Case (ii) — High-Premium Policies issued on/after 1.4.2023
If the LIP is issued on or after 1.4.2023 AND the premium payable exceeds ₹ 5,00,000 in any P.Y. — the proceeds are taxable.
Aggregation Rule: If the assessee has more than 1 LIP, exemption is available only for those LIPs for which the aggregate premium in any P.Y. does not exceed ₹ 5,00,000.
### Important Carve-Out
Cases (i) and (ii) do NOT apply where the amount is received on death of the insured — fully exempt in all cases.
## Computation of Taxable Income (if not exempt)
| Particulars | Amount |
|---|---|
| Amount Received under LIP | XX |
| (−) Premium paid till date of receipt | (XX) |
| Income from Other Sources | XX |
## Assessee's Option for Aggregation
Where multiple post-1.4.2023 high-premium LIPs exist, the assessee can choose which policies' premiums to aggregate within ₹ 5 lakh to maximize exemption.