LIC Policy surrender

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khyati

khyati (Querist)
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23 April 2009 Income arising out of LIC Policy surrender is taxable or taxfree ?

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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23 April 2009 Maturity of LIC is exempted u/s 10(10)(d) if the any premium paid by you during the policy is not more than 20% of the sum assured.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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23 April 2009 Not all the policies issued by the LIC are taxfree. Even if it is policy issued by LIC, few are treated only as annuity policies taxable under different provisions of income-tax law.

Better to read out the term and conditions.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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23 April 2009 In my opinion...The surrender value of Insurance policy is not taxable.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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23 April 2009 as per section 10(10D) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than—
(a) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA; or
(b) any sum received under a Keyman insurance policy; or
(c) any sum received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured:
Provided that the provisions of this sub-clause shall not apply to any sum received on the death of a person:and in acse where premium paid is more then 20% of sum assured

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