How to calculate tax on life insurance policy maturity value

Hi,

How to calculate tax on life insurance policy maturity value if the maturity proceeds are not exempted under Section 10(10D)?  Sum assured on single premium life insurance policies is 1.25 times the premium amount. This amount is linked to the equity market.Premium amount Rs. 3,60,000/-. Sum Assured was Rs. 4,50,000/-. After 5 years maturity amount is Rs, 6,75,000/- .TDS deducted u/s 194DA on 6,75,000/- @ 1%. How to calculate tax? Whether Tax is to be calculated on 6,75,000 or on Rs. 3,15,000/-(6,75,000 - 3,60,000)? Please advise?

THANKS IN ADVANCE.

Replies (2)
Plain reading of section 10(10D) along with section 194DA provide that entire maturity proceeds is taxable...i.e. Rs 675000 in ur case

Devakinandan-ji, How to check whether the survival benefit and maturity amount of our LIC policy is taxable or not?

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