Matured amount of Life Insurance Policy
Pooja Kotegar (14 Points)
24 September 2019
Is the amount matured amount received from life insurance policy taxable???
Pooja Kotegar (14 Points)
24 September 2019
Kapadia Pravin
(17249 Points)
Replied 24 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 24 September 2019
1. LIC maturity if covered u/s 10(10D), then the entire amount is exempt. See provision sec 10(10D) for further conditions in relation to the policy.
2. LIC maturity if not covered u/s 10(10D) will be taxable in the hands of the recipient under income from other sources and premium paid will be available as deductions.
3. 01.09.2019 TDS @ 5% will be deducted on the net maturity proceeds.
Please correct me if the above solution has an alternative view.
CAclubindia
