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Vineet Aggarwal (Article Assistant)     28 December 2011

Amount received on maturity of lic

Hello Friends i need your suggestion on this issue

Whether amount recd. on maturity on LIC is taxable or not?



 12 Replies

rakeshkuma

rakeshkuma (B.COM CA FINAL)     28 December 2011

if the amount received from LIC before 5 years (i.e. pre-withdraw) , it is taxable.

otherwise not.

CS RAJESH C.CHOUDHARY

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER)     28 December 2011

Dear Vineet,

The answer is NO it is not taxable under income tax.

It is exempt u/s10 (10D)

Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy, including the sum allocated by way of bonus on such policy is exempted from income-tax. 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.

1 Like
@*CS Siddharth Bumb. *

@*CS Siddharth Bumb. * (B.Com, CA Final, CS )     29 December 2011

Originally posted by : RAJESH CHOUDHARY

Dear Vineet,

The answer is NO it is not taxable under income tax.

It is exempt u/s10 (10D)

Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy, including the sum allocated by way of bonus on such policy is exempted from income-tax. 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.

U S Sharma

U S Sharma (glidor@gmail.com)     29 December 2011

LIC maturity proceeds are simply does not consist part of income, its exempted u/s 10(10D), including survival benefits and death claims.

 

However commuted annuity under jeevan dhara, jeevan akhay (pension plans)and keyman insurence has its own set of exemption norms, please refer the polcy doeuments for actual exemption terms and quantam.

Bhanu Prakash Rao

Bhanu Prakash Rao (Think Beyond Stay Ahead...!)     29 December 2011

Agree with Rajesh.....

RONAK DARJI

RONAK DARJI (CA FINAL)     29 December 2011

No,Maturity amount is not taxable...

Because whatever amount comes at maturity by LIC is totally exempted...

 

Regards,

Ronak Darji

Meera Shanker

Meera Shanker (Student)     07 July 2015

My insurance policy does not come under the exemption of 10(10D).I want to know whether the tax is payable on the entire proceeds (or) proceeds-premium.

U S Sharma

U S Sharma (glidor@gmail.com)     07 July 2015

Originally posted by : Learner
My insurance policy does not come under the exemption of 10(10D).I want to know whether the tax is payable on the entire proceeds (or) proceeds-premium.

 you have to look into the premiums payment and any claim filed on the premiums, in  common words entire proceeds is taxable in the year of receipt.  if sec 10 is not applicable 

Partha Mukherjee

Partha Mukherjee (Associates)     22 July 2015

For LIC Maturity under what Should be repoted as Exampted Income -

Total Maturity Value  

or

Total Maturity Value minus Amount Paid as Premium.

Thanks
 

Anand

Anand (article assistant)     28 December 2016

Which form to be used to file Income tax return in case of Income from LIC policy maturity and the assesse(Individual) has even business income.

 

Meera Shanker

Meera Shanker (Student)     29 December 2016

Originally posted by : Anand
Which form to be used to file Income tax return in case of Income from LIC policy maturity and the assesse(Individual) has even business income.

 

ITR 4

Aditya Tayal

Aditya Tayal   13 July 2018

Sir, 

Under which head of Income the amount received on maturity of LIC, which is not exempt under section -10(10D), will be computed and how tax would be computed on the same.

Thanks in advance


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