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Amount received on maturity of lic

Article Assistant


Hello Friends i need your suggestion on this issue

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

 
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B.COM CA FINAL


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

otherwise not.

 
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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

 
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B.Com CA Final CS Professional

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.

 
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glidor@gmail.com


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.

 
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Think Beyond Stay Ahead...!

Agree with Rajesh.....

 
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No,Maturity amount is not taxable...

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

 

Regards,

Ronak Darji

 
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My insurance policy does not come under the exemption of 10(10D).I want to know whether the tax is payable on the entire proceeds (or) proceeds-premium.

 
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glidor@gmail.com


Originally posted by : Learner
My insurance policy does not come under the exemption of 10(10D).I want to know whether the tax is payable on the entire proceeds (or) proceeds-premium.

 you have to look into the premiums payment and any claim filed on the premiums, in  common words entire proceeds is taxable in the year of receipt.  if sec 10 is not applicable 

 
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For LIC Maturity under what Should be repoted as Exampted Income -

Total Maturity Value  

or

Total Maturity Value minus Amount Paid as Premium.

Thanks
 

 
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