LIC Amritbaal tax treatment

Tax treatment of Amritbaal

Premium qualifies for §80C up to ₹1.5L per year under the proposer/parent's name. The 10× SA rule applies and Amritbaal at the limited-pay tariffs (₹199/1000 SA at age 30 sample) typically does not satisfy the 10× condition for the 5/6/7-year PPT variants — buyers should explicitly verify with their LIC branch whether their specific configuration crosses the 10× threshold; if not, maturity proceeds will be taxable as 'income from other sources' in the proposer's hands. Death benefit (parent's death during PPT, with PWB rider active) keeps the policy in force without further premium and the eventual maturity to the child remains tax-free if the original 10× condition is met. The corpus paid to the child at maturity is in the proposer's name and may be gifted to the major child without further tax under the parent-to-child gift exemption. From 22 September 2025, individual life insurance premiums attract 0% GST.

The 10× sum assured rule

For policies issued after 1 April 2012, both §80C deduction on premiums and §10(10D) exemption on maturity require the sum assured to be at least 10× the annual premium. Jeevan Labh's standard premium tables comfortably meet this — only watch out at very high entry ages where premium-to-SA ratios compress.

What changes from FY 2023-24

For non-ULIP life insurance policies issued on or after 1 April 2023 with annual premium above ₹5 lakh, maturity proceeds become taxable. Jeevan Labh premiums for typical sum-assured ranges (₹2 L–₹20 L) sit well below that threshold, so this rule rarely bites — but worth confirming for high-SA policies.