Taxability of maturity amount received from lic

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2015 I have taken a policy from LIC of Rs. 100,000 and received of Rs. 150,000/-(two equal installment) from LIC as maturity amount and LIC deducted tds @ 2 % on Rs.75000/- (tds amount Rs. 1500/-).
My question is whether the amount received from LIC is taxable or not?
If taxable, then what amount taxable i.e. Rs.150,000/- or Rs. 50,000/- (150000-100000).

PRATIK AGRAWAL

PRATIK AGRAWAL (Expert)

06 August 2015 As per section 10 (10D) of Income tax act, if you were paying premium which does not exceed 10% of the sum assured if purchased before 1.04.2012 or 10% of sum assured of purchased after 1.04.2012 then your receipt is tax free, you will get a refund of the TDS amount or you will have to adjust this TDS towards other tax liability.

Hope it helps.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2015 Thanks Pratik sir,
Please specify how much amount taxable.
Policy amount is Rs.1,00,000/- and Maturity amount Rs. 150,000/-
whether whole amount taxable (i.e. 150,000) or balance amount( i.e.50,000/-)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now