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Section 194da

Sen P (Retired) (27 Points)

05 August 2016

Can I claim refund of TDS deposited by LIC under section 194da?

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 05 August 2016

If you have profits from the policy, you may have to pay more tax. But if you are at loss from the policy and/or you are under the taxable limit, you have chance to get back the TDS deducted.

In any case you are required to file return and show the proceeds of the policy.

Sen P (Retired) (27 Points)
Replied 06 August 2016

Q1. What exactly do you mean by profit? LIC has shown income of more than Rs 5 lac as income and TDS 10000 in my 26as without any intimation to me. The most surprising fact is that I never got the 5lac!!! All I have got is a little more than a lac in a year. The equations just don't work out. Where do I show an income I never received and is it right to claim a refund of Tax. When the policy was sold to me I was given to understand that annuity received would be exempt under 10(10)d. Should I report this to irda? For misspelling and keeping client uninformed? LIC has not even bothered to issue a TDS certificate till date.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 06 August 2016

Yes, I can feel your concern, and have sympathy for same.

As far as TDS u/s. 194DA, LIC has to follow the rules enected by Government from time to time. May be when you purchased the policy, this rule was not there, but added afterwards. But you must get TDS certificate from LIC/TDS deductor, by first week of the June, next to corresponding year.

There are differnt types of policies, but if yours one was ULIP one, and if it was for more than 5 years term, with premium amount not more than 20% of sum assured; calculate profit as:

Actual Maturity proceeds(including TDS) - total of premium amount paid=profit (if +) or(Loss if -ve)

Sen P (Retired) (27 Points)
Replied 06 August 2016

LIC has not only not furnished the TDS certificate but not even intimated in any form. Moreover the amount reported by them in my 26AS was never received by me.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 07 August 2016

Last date for issuance of the TDS certificate (Form 16A) for Quarter 4 of FY: 2015-16 was 31st May, 2016.

Failure to issue TDS certificate within the time allowed, attracts penalty of Rs. 100/- per day of default (Sec 272A(2)(g)). However, penalty will not exceed the amount of tax deductible or collectible, as the case may be.

You may complain in writting to your ITO for non-receipt of the TDS certificate.