Taxability of Premium & Survival Benefit

This query is : Resolved

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Sir,
A has taken HDFC Life Sanchay Par Advantage policy under which the Annual Premium is to be paid and Policy holder immediately starts getting monthly Survival Benefit. The amount arising on account of Maturity/Death would be paid to the Life Assured by the Policyholder.

Under the premises kindly advise
whether :
A. Is Annual Premium eligible for deduction under Sec 80C?
B. Is monthly Survival Benefit Taxable?
C. Will the amount receivable by the Life Assured taxable as and when the Maturity/Death Claim arises?

Thanks & Regards

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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16 August 2024 1. Yes,
2. Not clear on that, depends upon the applicability of sec. 10(10D) eligibility.
3. Capital gains liability over maturity claim, but not taxable on death claim.

RAJEEV KUMAR MEHTA

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Sir,
Thank You for your kind advice!
Maturity Claim in any case is infructuous since the term of the policy issued in 2020 is 76 years. Policyholder whilst taking the policy itself was 80 plus.

The gentleman could not possibly see through this whilst Insurance Advisor recommended the policy.

Thanks & Regards

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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16 August 2024 The benefit of the policy cannot extend for more then 100 years age of policyholder!!!

RAJEEV KUMAR MEHTA

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Thank You Sir !

Would appreciate relevant ruling so that the matter can be taken up with Insurance Company.

Thanks & Regards

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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16 August 2024 Check your policy terms...
extracted from ....
https://www.hdfclife.com/savings-plans/sanchay-par-advantage

POLICY TERM
Whole of Life – Till age 100 years
(100 minus Age at Entry)

Additionally, the Policyholder can choose a fixed Policy Term in the range of 20-40 years.

RAJEEV KUMAR MEHTA

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Thank You Sir!

It seems the term of 76 years may have been calculated in the basis of age of life assured by the Policyholder. But even then if maximum term can be 40 years how a policy for a term of 76 years has been issued.

Shall go through the link sent by you.

Thank you once again. As always you have been very helpful.

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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16 August 2024 Here, Age of policy holder considered as 24 years in your case.
Policy holder has option to choose 100-age as maximum years; so he can even choose less from the maximum say 40 or 60 years in this case, but not possible to choose 80 years.

RAJEEV KUMAR MEHTA

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Sir,

O.k. Got the point.

Thanks & Regards

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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16 August 2024 You are welcome.

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