Taxable part of immediate annuity
This query is : Resolved
30 July 2025
I know that annuity income is taxable. I want to know in case of immediate annuity , is part of it non taxable due to exclusion ratio concept? If yes, how to calculate it ?
31 July 2025
Exclusion Ratio = Your investment divided by Expected Return
This ratio is typically expressed as a percentage or a decimal.
Determine the Non-Taxable Portion of Each Payment:
Non-Taxable Portion = Annuity Payment Received × Exclusion Ratio
Determine the Taxable Portion of Each Payment:
Taxable Portion = Annuity Payment Received - Non-Taxable Portion
Your annuity provider (the insurance company) should typically provide you with the necessary information for tax purposes, including details related to the exclusion ratio, if applicable.
This ratio is typically expressed as a percentage or a decimal.
Determine the Non-Taxable Portion of Each Payment:
Non-Taxable Portion = Annuity Payment Received × Exclusion Ratio
Determine the Taxable Portion of Each Payment:
Taxable Portion = Annuity Payment Received - Non-Taxable Portion
Your annuity provider (the insurance company) should typically provide you with the necessary information for tax purposes, including details related to the exclusion ratio, if applicable.
25 September 2025
Good luck...
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
- Applicability of TDS on CFS, CHA fees, and shipping line charges
- Notice from IT DEPTT IF FD AMOUNT EXCEEDS 10 LACS
- Limited Liability Partnership Firm
- Unable to generate and save json file for updated return
- GST payable under RCM
- Applicablity on tds
- Section 194I not showing in TDS RPU for Compnay Assessee for TDS on rent
- LTCG offset against property buy
- PRODUCT AND SERVICE CATEGORY CODE
- Tax audit & Switching from Presumptive taxation
- Regarding TDS not deducted on rent
- REGARDING CLAIM OF LAST YEAR TDS
- Regarding income tax return of company and LLP
- Import purchase entry
- Under which tax head RCM on Commission on Sale is to be paid.
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
