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Income Tax on LIC amount received

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Jaimit

MBA

21 Points Posted on 12 January 2024

Hello Experts,

I had some LIC policies between 2003-2008 but I had stopped paying yearly premiums after 4-5 premiums. Now I decided to encash them (as I'm in need of some money). I surrendered some of these policies (as their maturity was in future) and some already matured so I submitted to get the maturity amount.

My question:

What are the tax implications on the amount which I received from LIC as surrender value or maturity value ?
Will tax be levied on the total amount received or is there any deduction ?
Is there any legal way to minimize tax on the amount received.

Please guide me.

Regards,

Jaimit

Replies (4)

Quick Summary

This discussion addresses the tax implications of receiving money from surrendered or matured LIC policies. Generally, amounts received from LIC policies, particularly those under the EEE (Exempt, Exempt, Exempt) status, are not taxable. While there might be specific clauses to consider, the consensus is that tax is unlikely to be levied on the received amount, and there are legal avenues to explore for tax minimisation.