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LIC MATURITY TAXABLE?

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This query is : Resolved

Quick Summary

Generally, maturity amounts received from LIC policies are tax-exempt under Section 10(10D) of the Income Tax Act. However, this exemption applies only if the policy was issued under this section and the premium paid does not exceed certain limits. For policies issued before April 1, 2003, the premium limit is 20% of the sum assured, while for policies issued after this date, it's 10%.

PANDIAN BRIGHT

PANDIAN BRIGHT (Querist)

30 July 2024 Is maturity amount received from LIC taxable ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 July 2024 Check its terms. If the policy is stated to be issued as per sec. 10(10D) IT act, then It is exempt. Otherwise taxable.

Gokul Sharma

Gokul Sharma (Expert)

30 July 2024 To sum up, the LIC maturity amount is fully tax-exempt under Section 10(10D) unless the premium exceeds 10% (20% in case of policies issued after April 1, 2003) of the sum assured

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