HSP, a LLP had taken Key Men insurance policy on the life of its Managing Partner. The policy got matured on 13th September, 2017 and amount of ₹ 75 lakh was paid by the insurers to the Managing Partner. The amount so received on maturity of the policy by the managing partner:
A. Is exempt in full u/s 10(10D)
B. 50% of ₹ 75 lakh is exempt
C. ₹ 75 lakh is taxable
D. ₹ 25 lakh is exempt and balance is taxable
Answer:C
HSP, a LLP had taken Key Men insurance policy on the life of its Managing Partner. The policy got matured on 13th September, 2017 and amount of ₹ 75 lakh was paid by the insurers to the Managing Partner. The amount so received on maturity of the policy by the managing partner:
A. Is exempt in full u/s 10(10D) B. 50% of ₹ 75 lakh is exempt C. ₹ 75 lakh is taxable D. ₹ 25 lakh is exempt and balance is taxable