As of 8 November 2026, under Schedule II of the Income-tax Act, 2025, what are the annual premium…
The two ceilings are ₹5 lakh per tax year and 10% of the actual capital sum assured. Exceeding either ceiling disqualifies the maturity payment from this exemption. The ₹2.5…
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As of 8 November 2026, under Schedule II of the Income-tax Act, 2025, what are the annual premium ceilings for exemption of a maturity payment from a single ordinary, non-unit-linked life policy issued by a domestic insurer outside an International Financial Services Centre in April 2026? Assume the policy is neither a Keyman policy nor a special policy.
Answer and explanation
Correct answer A
The two ceilings are ₹5 lakh per tax year and 10% of the actual capital sum assured. Exceeding either ceiling disqualifies the maturity payment from this exemption. The ₹2.5 lakh ceiling applies to relevant unit-linked policies, and the 15% ratio applies to qualifying special policies.
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West Bengal SET (WB SET)