HSK, an LLP had taken keyman insurance policy on the life of its managing partner. The policy got matured on 13th September, 2020 and an 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 is
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
HSK, an LLP had taken keyman insurance policy on the life of its managing partner. The policy got matured on 13th September, 2020 and an 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 is
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