Taxability/Exemption for Life Insurance Policy maturity proceeds
This query is : Resolved
V. P. Vidwans
(Querist)
19 September 2024
Sir/madam,
I had purchased a life insurance policy under the Unit Linked Insurance Plan. It was 10-years plan, involving 10 annual premiums of Rs. 120,000/- each. The sum assured was Rs. 840,000/-. The Policy was purchased in January 2014 & matured in January 2024. I paid all the 10 instalments regularly (totaling to Rs. 12.00 Lakhs).
On its maturity in January 2024, I received a cheque of Rs. 18,73,876/- from the Insurance Company, after deducting TDS of Rs. 35,467/- u/s 194DA. (Gross maturity amount Rs. 19,09,343/-; Gain of Rs. 709,344/-). The said amounts of Rs. 709,344/- and Rs. 35467/- are appearing in my Form 26AS. My Return is filed under the Old regime of income Tax & my taxable income is more than the minimum threshold amount required for taxation, even without considering the said gain of Rs. 709,344/-.
Please advise:
1) what would be the taxable amount out of the gain of Rs. 709,344/- &
2) whether I can claim the exemption u/s 10 (10D) despite the fact that the annual premium payable was more than 10% of the Policy amount.
I had purchased a life insurance policy under the Unit Linked Insurance Plan. It was 10-years plan, involving 10 annual premiums of Rs. 120,000/- each. The sum assured was Rs. 840,000/-. The Policy was purchased in January 2014 & matured in January 2024. I paid all the 10 instalments regularly (totaling to Rs. 12.00 Lakhs).
On its maturity in January 2024, I received a cheque of Rs. 18,73,876/- from the Insurance Company, after deducting TDS of Rs. 35,467/- u/s 194DA. (Gross maturity amount Rs. 19,09,343/-; Gain of Rs. 709,344/-). The said amounts of Rs. 709,344/- and Rs. 35467/- are appearing in my Form 26AS. My Return is filed under the Old regime of income Tax & my taxable income is more than the minimum threshold amount required for taxation, even without considering the said gain of Rs. 709,344/-.
Please advise:
1) what would be the taxable amount out of the gain of Rs. 709,344/- &
2) whether I can claim the exemption u/s 10 (10D) despite the fact that the annual premium payable was more than 10% of the Policy amount.
22 September 2024
1. Rs. 7,09,344/-
2. Not eligible.
2. Not eligible.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
