Mr. Abhiman received ₹1,30,000 on 31.03.2017 towards maturity proceeds of the insurance policy issued on 1.04.2013. The annual premium and capital sum assured are ₹23,000 and ₹1,20,000 respectively.

Section 10(10D) exempts, any sum received (otherwise than on death) under a life insurance policy, other than any sum received under an insurance policy issued on or after 01.04.2012 in respect of which the premium payable for any of the years during the term of the policy exceeds 10% of the capital sum assured. Therefore ₹1,30,000 received by Mr. Abhiman towards maturity proceeds of the life insurance policy would be chargeable to tax since the premium paid ₹23,000 exceeds 10% of the capital sum assured i.e. ₹1,20,000 and policy is issued on or after 1-4-2012.