Life insurance

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Hari Nair (Querist)
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18 June 2018 A person joined for single premium life Insurance policy. He paid Rs 500,000 as initial premium and on maturity 800,000 received.

Insurance company deducted TDS on Receipts at the maturity time . is it Correct.

What is the taxability of maturity amount received on Life insurance policies

Nikhil Kaushik online

Nikhil Kaushik online

(Expert)
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18 June 2018 It is taxable as Income from other source at normal rates. No deduction/exemption available for single premium policies

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Hari Nair

Hari Nair (Querist)
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19 June 2018 500000 lakh is his accumulated savings. he is in 10 Lakh plus slab. so this 8 Lakh rupees now received will attract 30 percentage tax . So the benefit he gained from the policy almost paid out as tax.