LIC Jeevan Utsav tax treatment

Tax treatment of Jeevan Utsav

Premiums qualify for §80C deduction up to ₹1.5L/year (SA ≥ 10× annual premium — Jeevan Utsav meets this for typical configurations). Annual income receipts (Option I) are tax-free under §10(10D). Option II Flexi withdrawals are also tax-free as survival benefit payments. Death benefit is tax-free. GAs form part of the maturity/death benefit and are therefore also tax-free. There is no separate GST on LIC individual life insurance policies since September 2025.

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.