Is there a tax on life insurance claim amounts?

Question

I received a payout from a life insurance policy. Do I have to pay any tax on it?

Answer 1

• Maturity benefits, death claims, and survival benefits received from a life insurance policy are not taxable in the hands of the recipient.

  The insurance company may deduct some charges at source, but under the law, such proceeds are treated as exempt income.

Comments

Please share source. Thanks

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The available sources, which detail income tax rules and legislation (Income Tax Rules, 2002, and Income Tax Ordinance, 2001 excerpts), do not contain a general provision explicitly addressing whether life insurance proceeds received are taxable.