LIC
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 July 2011
Is any amount received as an installment/Bonus/interest against LIC Policy (life insurance) taxable in income tax.
CA PARAS BAFNA
(Expert)
16 July 2011
You are talking about the receipts from LIC
but the description you have made can be perfectly correlated with the payment , which we are making to the LIC.
*
Installment = Amount of premium payable to LIC. & Interest = On late payment of premium LIC charges Interest.
*
I take- installments means money receivable from LIC by the policy holder under a money back policy.
Bonus/ Interest = Bonus- LIC does not give Interest, It gives Bonuses of various kinds like, revisionary bonus, loyalty addition etc.
*
All sums received from LIC on maturity of the policy are tax free.
*
However, where premium paid exceeds 20 % of sum assured and under a keyman policy , the amount received from LIC is Taxable.
but the description you have made can be perfectly correlated with the payment , which we are making to the LIC.
*
Installment = Amount of premium payable to LIC. & Interest = On late payment of premium LIC charges Interest.
*
I take- installments means money receivable from LIC by the policy holder under a money back policy.
Bonus/ Interest = Bonus- LIC does not give Interest, It gives Bonuses of various kinds like, revisionary bonus, loyalty addition etc.
*
All sums received from LIC on maturity of the policy are tax free.
*
However, where premium paid exceeds 20 % of sum assured and under a keyman policy , the amount received from LIC is Taxable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- GST on reimbursement of expenses
- Number of years as per AS amortisation of Goodwill
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Wrong CMPo8 file
- Additional trade name
- Whether output tax is taken credit by purchaser
- Equity Share Sale and Purchase
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
