Budget 2023

I have, say,

  1. 2 LICs with Annual premium p.a. totalling Rs 2,10,000.00
  2. 2 LICs with Annuity payment p.a. totalling Rs 1,90,000.00
  3. 1 LIC in the name of minor daughter with Annual premium p.a being Rs 98,000.00
  4. My income from salary p.a. Rs 2,51,000.00
  5. 1 FD maturity having Rs 1,80,000 principal and Rs 30,000.00 interest.

I need not pay taxes earlier, but this year I am eligible I think.

Please suggest, given the following scenario, which exemptions I am entitled to?

Replies (7)
Quick Summary
This discussion explores tax implications for an individual with multiple LIC policies and an FD maturity, following Budget 2023 changes. The user is seeking clarification on eligible deductions and exemptions, particularly concerning LIC premiums and annuity payments. The response clarifies that standard deduction and Section 80C deductions for LIC premiums are available, and despite significant LIC receivables, the user's taxable income remains nil, making them eligible for a tax rebate.

Hello,

You have a straight standard deduction of Rs.50000 is available as you have salary income.

Deduction u/s 80C is Rs.150000 for the first three items you stated.

 

 

You are not required to pay any tax . Your taxable income is almost nil

Deductions u/s 80C is for credit of payment or debit of premiums?

For 1&3, I am paying premiums.

For 2 &5, I am receiving payments.

What about other deductions such as section 80C as mentioned in the other response?

80 C is for credit for payment

I wrongly intérpreted the second item as payment. 

So for 1 and 3, you will get the benefit of deduction

 

Still you are eligible for rebate . no tax is leviable

How can I claim rebate on receivables from LIC above Rs 150000 u/s 80C?

In fact, I am expecting to set up another LIC with Rs 50000 credit p.a. So, now total receivables from LIC would exceed 80C limit by Rs 90000. Won't it become taxable?

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