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Discussion > Income Tax > Tax queries >

Amount received on maturity of lic

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Article Assistant


[ Scorecard : 142]
Posted On 28 December 2011 at 17:52 Report Abuse

Hello Friends i need your suggestion on this issue

Whether amount recd. on maturity on LIC is taxable or not?


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rakeshkuma
B.COM CA FINAL


[ Scorecard : 43]
Posted On 28 December 2011 at 18:05

if the amount received from LIC before 5 years (i.e. pre-withdraw) , it is taxable.

otherwise not.





RAJESH CHOUDHARY
ASSISTANT MANAGER


[ Scorecard : 13890]
Posted On 28 December 2011 at 18:07

Dear Vineet,

The answer is NO it is not taxable under income tax.

It is exempt u/s10 (10D)

Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy, including the sum allocated by way of bonus on such policy is exempted from income-tax. However any sum (not including the premium paid by the assessee) received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured will no longer be exempted under this section.



Total thanks : 1 times



@*Siddharth Bumb. *
B.Com CA Final CS Professional


[ Scorecard : 4860]
Posted On 29 December 2011 at 01:45

Originally posted by : RAJESH CHOUDHARY

Dear Vineet,

The answer is NO it is not taxable under income tax.

It is exempt u/s10 (10D)

Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy, including the sum allocated by way of bonus on such policy is exempted from income-tax. However any sum (not including the premium paid by the assessee) received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured will no longer be exempted under this section.




U S Sharma
glidor@gmail.com


[ Scorecard : 19398]
Posted On 29 December 2011 at 11:51

LIC maturity proceeds are simply does not consist part of income, its exempted u/s 10(10D), including survival benefits and death claims.

 

However commuted annuity under jeevan dhara, jeevan akhay (pension plans)and keyman insurence has its own set of exemption norms, please refer the polcy doeuments for actual exemption terms and quantam.




BHANU PRAKASH M
Think Beyond Stay Ahead...!


[ Scorecard : 911]
Posted On 29 December 2011 at 14:56

Agree with Rajesh.....




RONAK DARJI
CA FINAL


[ Scorecard : 323]
Posted On 29 December 2011 at 15:05

No,Maturity amount is not taxable...

Because whatever amount comes at maturity by LIC is totally exempted...

 

Regards,

Ronak Darji



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