INSURANCE PREMATURE

This query is : Resolved 
Quick Summary
This discussion clarifies the tax implications of an SBI Life insurance policy maturity. The client deposited Rs. 25,000 annually for 5 years, totalling Rs. 125,000, and received Rs. 198,560 upon maturity in March 2021. The key factor for tax exemption is whether the 'Sum Assured Value' was Rs. 2.5 lakhs or more. If it was, the maturity proceeds are tax-exempt; otherwise, the difference between the maturity value and premiums paid may be subject to income tax for FY 2020-21.

Profile Image

Profile Image

(Querist)
27 May 2021 SIR
ONE OF OUR CLIENT DEPOSITED EVERY YEAR Rs.25000/- FOR 5 YEARS POLICY SBI LIFE. THE SAME WAS MATURED AND CREDIT THE PROCEEDS DURING THE MARCH 2021 HIS ACCOUNT. PLEASE LET ME KNOW THE DIFFERENCE VALUE LIABLE FOR INCOME TAX FOR THE FY 2020-21 (PAID Rs.125000 MATURED VALUE Rs.198560)
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
24 September 2021 What was "Sum Assured Value" of the policy?
Whether any TDS was deducted on maturity amount?
Profile Image

S. RAVICHANDRAN

Profile Image

S. RAVICHANDRAN (Querist)
24 September 2021 THERE IS NO TDS DEDUCTION IN THE PREMATURE AMOUNT
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
24 September 2021 Check if 'sum assured' is equal or more than 2.50 lakhs, then it will be tax-exempt. Otherwise taxable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Veerabadrayya TVeerabadrayya TPro Member R.Chandrakanthan,M.A,B.L,M.B.AR.Chandrakanthan,M.A,B.L,M.B.APro Member Rubal SinghalRubal SinghalPro Member Rakesh BansalRakesh BansalPro Member prasanta kumar pandaprasanta kumar panda
Subscribe to Pro
Join an elite circle of professionals



Answer Query



Quick Links



Browse by Category