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LIC Maturity Proceeds

Amit Jain (Proprietor ) (533 Points)

14 February 2021

Whether we can deduct the amount of premium paid from LIC Maturity Proceeds while preparing Computation of Income

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 15 February 2021

No you cannot

Avtar Singh (363 Points)
Replied 15 February 2021

It mean premium paid is also an income part??

KusHagra AgaRwal (207 Points)
Replied 15 February 2021

Yes you can deduct amount of premium from lic maturity proceeds and tds will be deducted by the insurance co. under sec 194DA if net income from maturity exceeds 1Lakh @ 5%

Avtar Singh (363 Points)
Replied 15 February 2021

Sir, what does mean the net income?

KusHagra AgaRwal (207 Points)
Replied 15 February 2021

Net income as in they will deduct tds on the amount of maturity proceeds (including bonus) after deducting the premium paid by the assessee if the maturity is taxable i.e. not exempt under 10(10C)