Income tax on maturity amount
This query is : Resolved
30 September 2018
I had a ICICI Prulife Life time Pension Plan II policy without any Insurance cover. I paid Rs 30000.00 per year for 10 years till 2016. I got the maturity proceedings with a maturity value of 5,67,000.00 (against a total premium of Rs 3,00,000.).The insurance company paid me the full accumulated amount
I would like to know income tax implication for above policy .
I would like to add the following
This was entirely a Pension policy.No Insurance. The death benefit as per my Application was ZERO.
Regarding the return of entire amount, the Insurance Company said as per rules I could commute only 33 .3% of maturity amount.But since return with balance in annuity will be around 6.5% and that too taxable ,they told me I could claim the full amount and I got it credited to my bank account.The original vesting date was 23/05/2016.(ten years after commencement of policy on 23/05/2006).As the fund value was not good at the time,I got the vesting date postponed to 01 Dec 2018.
Now the doubt persists on Income tax on amount received.(premium paid 300000.00 and maturity value 5,67,000.00)
Regards
I would like to know income tax implication for above policy .
I would like to add the following
This was entirely a Pension policy.No Insurance. The death benefit as per my Application was ZERO.
Regarding the return of entire amount, the Insurance Company said as per rules I could commute only 33 .3% of maturity amount.But since return with balance in annuity will be around 6.5% and that too taxable ,they told me I could claim the full amount and I got it credited to my bank account.The original vesting date was 23/05/2016.(ten years after commencement of policy on 23/05/2006).As the fund value was not good at the time,I got the vesting date postponed to 01 Dec 2018.
Now the doubt persists on Income tax on amount received.(premium paid 300000.00 and maturity value 5,67,000.00)
Regards
Amol S Joglekar
(Expert)
30 September 2018
The maturity amount is exempt.
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