Taxability of lic policy's maturity amount
This query is : Open
23 June 2017
SIR,
Please, guide into following :
An individual has received maturity amount of his LIC life insurance policy, in FY 2016-17.
Policy started in October 1996 and matured in October 2016.
Policy Sum assured = Rs. 1,00,000.
Total premium paid by him during the policy period = Rs. 1,20,000.
Total Maturity Amount received in October-2016 = Rs. 2,15,000.
No any other amount is received during policy period, except this maturity amount.
QUE.1: Is this LIC Policy's maturity amount, taxable income ?
Is any tax to be paid on it ?
QUE.2: Will he have to show this Policy's maturity amount, in his Income tax Return of F.Y. 2016-17 ?
If yes, then :
- Where to show this amount ? - Under which head ?
QUE.3 : How much amount to show in the Return as income ?
- Full Maturity amount Rs. 2,15,000 ?
OR
- Maturity Amount - Total Premiums Paid ?
[ Rs. 2,15,000 - Rs. 1,20,000 = Rs. 95,000 ] ?
Please, guide.
Thanks in advance .
Please, guide into following :
An individual has received maturity amount of his LIC life insurance policy, in FY 2016-17.
Policy started in October 1996 and matured in October 2016.
Policy Sum assured = Rs. 1,00,000.
Total premium paid by him during the policy period = Rs. 1,20,000.
Total Maturity Amount received in October-2016 = Rs. 2,15,000.
No any other amount is received during policy period, except this maturity amount.
QUE.1: Is this LIC Policy's maturity amount, taxable income ?
Is any tax to be paid on it ?
QUE.2: Will he have to show this Policy's maturity amount, in his Income tax Return of F.Y. 2016-17 ?
If yes, then :
- Where to show this amount ? - Under which head ?
QUE.3 : How much amount to show in the Return as income ?
- Full Maturity amount Rs. 2,15,000 ?
OR
- Maturity Amount - Total Premiums Paid ?
[ Rs. 2,15,000 - Rs. 1,20,000 = Rs. 95,000 ] ?
Please, guide.
Thanks in advance .
CA Rashmi Gandhi
(Expert)
23 June 2017
1. Maturity amount is exempted.
2. Same is to be shown in ITR as exempted income.
3.Maturity amt of Rs.215000 is shown in ITR
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