LIC Bima Jyoti tax treatment

Tax treatment of Bima Jyoti

Premium qualifies for §80C up to ₹1.5L per year on the 10× SA rule — Bima Jyoti's tabular premium of ₹116/1000 SA at age 30, 15-year PPT means SA ≥ 8.6× annual premium for that profile, which is below the 10× threshold. Buyers should confirm the SA-to-premium ratio for their specific age/term combination; if it falls short of 10×, the 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.