LIC Maturity Amt is LTCG ? We claim Exemption up to 1 lac

LIC Policy sum assured Rs.1 lac for period of 7 years Premium is 14500/-
Amt recd on maturity is 2.10 lacs
Additional Amt recd is 1.10 lacs it is considered as LTCG ? We can claim exemption up to 1 lacs
Replies (3)
Quick Summary
This discussion clarifies whether a LIC policy maturity amount is considered Long Term Capital Gains (LTCG) and eligible for exemption up to Rs. 1 lac. The consensus is that for a standard LIC policy (not a ULIP with a premium of Rs. 2.5 lakhs or more), the additional amount received on maturity is taxable under the 'Income from Other Sources' head. Therefore, the Rs. 1 lac exemption typically applies to ULIP redemptions under specific conditions.

No. That is only in cases of ULIP redemption. having premium Rs. 2.5 lakhs or more.

In above referred case, Rs. 1.10 L is taxable u/h. IFOS.

OK Thanks

You are welcome ..              

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