Amount of exemption u/s 10(10D)

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This discussion explores the tax implications of life insurance policies where the annual premium surpasses 10% of the sum assured. It questions whether the entire maturity amount or just the accretion is taxable, especially when previous years' premiums were claimed under Section 80C. The user also seeks advice on managing TDS discrepancies between Form 26AS and the Income Tax Return (ITR) when only the 80C claimed portion and accretion are considered taxable.

PURUSOTTAM PANDA

PURUSOTTAM PANDA (Querist)
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18 June 2022 Premium amount exceeds 10% of sum assured.

But, premium @ 10% claimed u/s 80C for past years.

Whether total amount received on maturity taxable or only accretion amount taxable?

Please suggest any tax planning in this regard.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 June 2022 80c amount claimed and accretion taxable.

PURUSOTTAM PANDA

PURUSOTTAM PANDA (Querist)
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18 June 2022 Sir,

The company will deduct tax at source on full maturity amount. Then, how could I show only 80C claimed amount and accretion as taxable. There will be difference in 26AS data and ITR data.

How to handle this mismatch? Please suggest.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 June 2022 Show the difference in exempt income schedule and say 80c not claimed amount.

PURUSOTTAM PANDA

PURUSOTTAM PANDA (Querist)
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18 June 2022 Thank you, sir. 🙏🙏🙏

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