Taxability of exereise of 100% cash option in LIC policy
This query is : Resolved
pankaj ajmera
(Querist)
09 November 2010
Sir,
I had taken Jeevan Dhara Policy of LIC in take year 2000 for 10 years which is due for repayment now. Instead of taking yearly annuity option , i would like to take 100% cash option (one time lump-sum payment )
Whether amount recieved by way of 100% cash option is taxable ?
Pankaj Ajmera
I had taken Jeevan Dhara Policy of LIC in take year 2000 for 10 years which is due for repayment now. Instead of taking yearly annuity option , i would like to take 100% cash option (one time lump-sum payment )
Whether amount recieved by way of 100% cash option is taxable ?
Pankaj Ajmera
CA.Madhusudan B.P.
(Expert)
09 November 2010
If the policy is general, thatis not specified policy for medical treatment as per Sec 80DD or 80DDA, the whole amount is not taxable including the amount by way of bonus.
09 November 2010
If the amount invested in the year 2000 is claimed as a deduction under section 80CCA(1) then the whole amount of the withdrawal is taxable as per section 80CCA(2) of the Income tax Act,1961 in the year of withdrawal.
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