Tds on lic premium

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This query is : Resolved

Rahul Mehra (Querist)

15 March 2014 Dear Sir,

LIC maturity amount is subject to TDS at on the maturity of policy or not?

Regards,
Rahul Mehra

Akash Barman

Akash Barman (Expert)

15 March 2014 Dear Rahul,
LIC maturity is exempt u/s 10 10(d).Therefore no tds is required to be deducted.

However any sum (not including the premium paid by the assessee) received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured will no longer be exempted under this section. - See more at: https://www.simpletaxindia.net/2010/03/life-insurance-premium-maturity-tax.html#sthash.5qLChRd6.dpuf

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Rahul Mehra

Rahul Mehra (Querist)

15 March 2014 Dear Sir,
Thanks to response.
But my LIC agent told me that there would be deduction of TDS on maturity amount as per interest slab as 10000/- or above.

Sir is it right or wrong?

Regards,
Rahul Mehra
Punjab

Akash Barman

Akash Barman (Expert)

15 March 2014 I Understand that interest received would be taxable while amount of sum assured received on account of LIC policy shall be exempted.

Interest amount can be extracted from tds certificate issued by LIC as TDS should have been deducted on interest portion only

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Rahul Mehra

Rahul Mehra (Querist)

15 March 2014 Thank you very much SIR...................!

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