HSK, an LLP had taken keyman insurance policy on the life of its managing partner. The policy got matured on 13th September, 2014 and an amount of ₹75 lakh was paid by the insurers to the managing partner. The amount so

CS Executive · Tax Laws and Practice · PYQS · December 2015
HSK, an LLP had taken keyman insurance policy on the life of its managing partner. The policy got matured on 13th September, 2014 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) Fully exempt under section 10(10D)
(B) 50% of ₹75 lakh exempt
(C) ₹75 lakh taxable
(D) ₹25 lakh exempt and ₹50 lakh taxable.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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