Income Tax on LIC amount received

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:

  1. What are the tax implications on the amount which I received from LIC as surrender value or maturity value ?
  2. Will tax be levied on the total amount received or is there any deduction ?
  3. 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.

Most scheme of lic are of eee status. so there won't be tax on it. and no tds will be deducted.
1. not taxable.
2. no tax to be levied
3. yes there are legal ways to mikimize tax.
Yes I agreed with Mr Sharath Chandra...

@ Jaimit,
first of check the lic policy. It's under EEE schemes..
@ there was a special cluse which was announced in the budget last year but later on repealed.

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