Tds deduction on lic policy

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2016 Sir,

TDS was deducted on LIC policy maturity proceeds surrendered,so inorder to claim back TDS what are the procedures to be undertaken

Rachit Nagpal

Rachit Nagpal (Expert)

13 June 2016 Your Premium must be more then the 10% of sum insured thats the reason TDS is deducted.It is a taxable amount however your total income including LIC maturity doesn't exceed the taxable limit then you can claim the refund while filing your income tax return.

Amol S Joglekar

Amol S Joglekar (Expert)

13 June 2016 you need to file the income tax return in order to claim the refund

Rupesh Jain

Rupesh Jain (Expert)

13 June 2016 in my opinion its not the part of taxable income when your policy amount exempt u/s 10(10D) its cover the policy, who's yearly premium not exceeds 10% of the sum assured and for detail you can see

premium in any year is more than 20% of the sum insured if it were bought after 1st April 2003 but before 31st April 2012
– or is more than 10% of the sum insured if it were bought after 1st April 2012
– or is more than 15% of sum assured for policies bought after 1st April 2013 for disabled or those suffering from ailments (as per section 80DDB).

on receiving the amount on policy exceeds the limit amount you have to include the amount recd form insurance company include in your income, and calculate your income and tax on that , you can file return and claim the tds.

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