Calculators LIC plans Nav Jeevan Shree Tax
LIC Nav Jeevan Shree tax treatment
Premium qualifies for §80C up to ₹1.5L per year, subject to the 10× SA rule. For Plan 912's typical limited-pay configurations (5–7 year PPT against a 20-year term), the SA-to-annual-premium ratio is generally below 10× because premiums are concentrated — buyers should verify the 10× condition for their specific age/term/PPT combination; if it falls short, maturity becomes taxable as 'income from other sources' at slab rate.
Tax treatment of Nav Jeevan Shree
Premium qualifies for §80C up to ₹1.5L per year, subject to the 10× SA rule. For Plan 912's typical limited-pay configurations (5–7 year PPT against a 20-year term), the SA-to-annual-premium ratio is generally below 10× because premiums are concentrated — buyers should verify the 10× condition for their specific age/term/PPT combination; if it falls short, maturity becomes taxable as 'income from other sources' at slab rate. Death benefits remain tax-free under §10(10D) without conditions. Surrender proceeds: tax-free after 2 premium years; prior §80C deductions clawed back if surrendered earlier. 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.
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