If tds deducted US 194da insurance policy maturity tax free

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This discussion clarifies TDS deductions under Section 194DA for life insurance policy maturity. If TDS has been deducted, it indicates a tax liability, meaning the policy may not be entirely tax-exempt. The taxable amount is generally the maturity proceeds minus the total premiums paid. You can claim the deducted TDS against this calculated income.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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22 July 2023 if TDS is deducted US 194DA on maturity of Life Insurance policy can we claim this amount ? policy is tax free or not ? please suggest

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 July 2023 Check the policy based on premium paid to sum assured for its tax exemption.
As tax has been deducted, it implies there is tax liability; or it is not tax-exempt.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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23 July 2023 It was deposited Rs 20 lac in 2013 lum sum and maturity comes in Feb 2023 Rs 38 lac. Now LIC has deducted tds US 194DA Rs 86k against payment of Rs 7.82 lac but actually LIC company paid Rs 38 lac as maturity
Is it Rs 7.82 lac income?
Please

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 July 2023 The maturity amount less 20 lakhs is taxable value.
TDS has been deducted against taxable value at 5% rate u/s. 194DA IT act.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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24 July 2023 it means Rs 7.82 lac my income from policy maturity and it should consider in other source

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 July 2023 Yes, taxable u/h IFOS. Claim TDS against the income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 September 2024 Good luck.