Calculators LIC plans New Children's Money Back Tax
LIC New Children's Money Back tax treatment
Survival benefits at ages 18, 20, and 22; the maturity payout; and any death benefit paid to the nominee are all tax-free under §10(10D), provided the BSA is at least 10× the annualised premium. Annual premiums qualify for §80C deduction (up to ₹1.5L/year).
Tax treatment of New Children's Money Back
Survival benefits at ages 18, 20, and 22; the maturity payout; and any death benefit paid to the nominee are all tax-free under §10(10D), provided the BSA is at least 10× the annualised premium. Annual premiums qualify for §80C deduction (up to ₹1.5L/year). From 22 September 2025, 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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