An individual has received maturity amount of his LIC life insurance policy, in FY 2016-17. Policy started in October 1996 and matured in October 2016. Policy Sum assured = Rs. 1,00,000. Total premium paid by him during the policy period = Rs. 1,20,000.
Total Maturity Amount received in October-2016 = Rs. 2,15,000. No any other amount is received during policy period, except this maturity amount.
QUE.1: Is this LIC Policy's maturity amount, taxable income ? Is any tax to be paid on it ? QUE.2: Will he have to show this Policy's maturity amount, in his Income tax Return of F.Y. 2016-17 ? If yes, then : - Where to show this amount ? - Under which head ? QUE.3 : How much amount to show in the Return as income ? - Full Maturity amount Rs. 2,15,000 ? OR - Maturity Amount - Total Premiums Paid ? [ Rs. 2,15,000 - Rs. 1,20,000 = Rs. 95,000 ] ?
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