Taxability of critical illness benefit.
Is the amount received from critical illness insurance ( a lump sum received on contracting a disease like cancer) exempt from income tax? If so, under what section/clause? It appears Sec 10(10D) is only for benefits from life insurance with some exceptions. more
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Some of Critical Insurance policies don't need the bills etc. the Sum Insured is payable upfront once the specified disease has been identified and established. So strictly it is not reimbursement. But normally all receipts from Insurance cos. are not taxable. Still it needs to be clarified by the insurance co. as i have suggested in my earlier post. more
Jul 19
Income Tax is payable / levied on the amount of income earned &/or received. Tax is not payable on reimbursement of any expenditure which has been incurred by any individual. You have already incurred the expenditure & submitted the bills etc to Insurance Co under Medical Claim policy hence it is not taxable. It may be any amount. more
Jul 19
All insurance receipts are non taxable. If you wish to be more sure and comfortable write a mail to the Insurance Co. concerned from whom did you buy the policy. more
Jul 19
It is not taxable under Section 80(D) of Income Tax, if you had taken any health insurance policy for that purpose prior to catching critical illness as defined in that policy. Section 10(10D) is for disability benefit for which a certificate from treating govt. institution/hospital is necessary. more
Jul 19
