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Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2017 Maturity proceed of Lic, premium for which has been made in one lump sum payment at the time of investment, will be taxable or exempt?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

11 September 2017 Depends on the sum assured.If the sum assured is minimum 10 times the single premium paid, the maturity amount is exempt.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2017 Thank you sir for your reply, but sir that provision is applicable when every year premium is being paid, but here only once payment has been made...

ALKESH T MEHTA

ALKESH T MEHTA (Expert)

12 September 2017 As per Section 10(10 D) the LIC Maturity amount is exempt from tax if it fulfills following condition 1. If Policy issued before April 1, 2003 Than all amount received as maturity will be exempted from tax. 2. If Policy issued on or after April 1, 2003 and before April 1, 2012 Than exemption available only when annual premium is not more than 20% of sum assured. 3. If Policy issued on or after April 1, 2012 and before April 1, 2013 Than exemption available only when annual premium is not more than 10% of sum assured

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2017 Thank you sir for reply but my question is as you wrote above 20%/10% is for annual premium then what is the provision for single premium policy?