Calculators LIC plans Index Plus Tax
LIC Index Plus tax treatment
Premiums qualify for §80C deduction up to ₹1.5 lakh per year (old tax regime only). If your aggregate annual premium across all ULIPs exceeds ₹2.5 lakh, maturity proceeds lose §10(10D) exemption and are taxed as LTCG at 10% without indexation (Finance Act 2021, applicable to policies issued on or after 1 Feb 2021).
Tax treatment of Index Plus
Premiums qualify for §80C deduction up to ₹1.5 lakh per year (old tax regime only). If your aggregate annual premium across all ULIPs exceeds ₹2.5 lakh, maturity proceeds lose §10(10D) exemption and are taxed as LTCG at 10% without indexation (Finance Act 2021, applicable to policies issued on or after 1 Feb 2021). Death benefits are unconditionally exempt. Fund switches between the two funds within the ULIP are not taxable events.
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.
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