Tax benefits Premiums paid under the policy are eligible for Income tax benefits under section 80ccc (i) of the Income Tax Act, 1961. however, the tax benefits will be as per prevailing provisions of Income Tax Act,1961. The commutation of maturity proceeds of the policy is not taxed as income of the policyholder or his dependents but the regular pension (annuity) receivable is taxable. The Plan | Benefits | Tax Benefits | Exclusion | Statutory Warning