Income tax

Dear Sirs,

LICI has deducted TDS u/s 194DA from Life Insurance Policy maturity value of Rs. 55,500/-. My question is whether the maturity value shall be taken as Income and , if so, under which 'head'.

Replies (3)
Quick Summary
This discussion clarifies the tax treatment of life insurance policy maturity amounts where TDS has been deducted under Section 194DA. The consensus is that the maturity value itself isn't fully taxable. Instead, the taxable income is calculated as the maturity value minus the total premiums paid. This profit should be declared under the 'income from other sources' head in your income tax return. If there's a loss (maturity value less than premiums paid), it does not need to be declared.

Yes, it will be income, show it under income from other sources head
Total Maturity value is not taxable...
[Maturity Value less total premium Paid] = Gain/profit is taxable as " income from other sources"
If you have loss no need of showing it in income tax under other source

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