" FINANCE ACT 2014 HAS INTRODUCED SEC 194DA "
The finance act 2014 has introduced sec 194DA requiring deduction of tax at source from any sum paid including bonus to a resident of india under a life insurance policy if gross payment under all such policies during the f.y Rs 1 lac and more .
So,
1) Maturity Value of LIC Policies --> fully non taxable income & you can add back that figure to Capital A/C in the balance sheet.
2) Any Death Claim not under purview of sec 194DA.
3) Rate of TDS 20% ( IF NO PAN ) OTHERWISE 2%.
Regards
CAclubindia
