Is LIC maturity tax free?

The maturity proceeds from life insurance policies issued by LIC (Life Insurance Corporation of India) were generally tax-free under Section 10(10D) of the Income Tax Act, 1961. This means that any money received upon maturity of a life insurance policy, including the sum assured and any bonuses, would not be subject to income tax.

However, there were a few conditions to be met for the maturity proceeds to be tax-free:

The premium paid should not exceed 10% of the sum assured for policies issued before April 1, 2012. For policies issued after April 1, 2012, the premium paid should not exceed 10% of the sum assured for policies on or after April 1, 2013, and 20% of the sum assured for policies on or after April 1, 2012, but before April 1, 2013.
In case the policyholder has surrendered the policy before the completion of the minimum prescribed period (usually two years for traditional policies and five years for ULIPs), the tax benefits will not apply, and the surrender value may be taxable.
For policies purchased on or after April 1, 2012, where the sum assured is less than ten times the annual premium, the maturity amount received will not be entirely tax-free, and the amount exceeding 10% of the sum assured will be taxable.

Keep in mind that tax laws are subject to change, and it's essential to refer to the latest income tax rules and consult with a tax professional or LIC representative for the most up-to-date and accurate information on taxation of LIC maturity proceeds at the time of maturity.

[Note: This is not lic orginal website.This is the only thing to shear information about lic]

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