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.
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.
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