The term 'premium without tax' is generally used to refer to the net premium amount that is payable by the policyholder, after deducting any taxes that may be applicable. In the case of Life Insurance Corporation of India (LIC), the premium without tax would be the amount payable by the policyholder minus any taxes that may be applicable.
There are various taxes that may be applicable on premiums paid towards life insurance policies, such as income tax, service tax, and Value Added Tax (VAT). The applicable tax rate would depend on the type of policy and the location of the policyholder.
Assuming that you are referring to an individual life insurance policy, the income tax laws applicable in India would be relevant. As per the Income Tax Act, any premium paid towards a life insurance policy is exempt from tax up to a limit of 10% of the sum assured. This means that if the premium payable is more than 10% of the sum assured, the excess amount would be taxable.
For example, if the sum assured under a life insurance policy is Rs.1 lakh and the premium payable is Rs.12,000, then only Rs.1,000 would be taxable, as it is the amount in excess of 10% of the sum assured.
