12 February 2019
Sir I have purchased wealth plus a single premium life insurance (SPLI) policy on 07/05/2010 by paying 2 lakhs as a single paid premium. It get matured on 2018 after eight years .I received total amount of 291732 having interest incurred of 91732 in eight years .TDS at the rate of one percent is deducted by LIC on the entire amount of 291732 and in my 26AS entire amount is shown credited to me .Now I have questions whether the entire amount of 291732 or only interest incurred of 91732 will come in my form 16 column of “income from other source” for purpose to calculate tax or does the entire amount comes under long term capital gain and is tax exempted .please clarify.
14 February 2019
Exemption under section 10(d) not allowed in given case as its premium amount exceeds 20% of sum assured (applicable for policies taken before 01.04.2012, 10% case of policies taken thereafter). Interest amount shall be taxable under head 'Income from other sources'.