LIC Maturity Proceeds

Whether we can deduct the amount of premium paid from LIC Maturity Proceeds while preparing Computation of Income
Replies (5)
Quick Summary
This discussion clarifies whether premiums paid can be deducted from LIC maturity proceeds when calculating income. While generally not deductible as an expense against income, the net income for TDS purposes is calculated by deducting the premium paid from the maturity proceeds (including bonus). TDS under Section 194DA applies if this net taxable income exceeds £1 lakh, at a rate of 5%.

No you cannot
It mean premium paid is also an income part??
Yes you can deduct amount of premium from lic maturity proceeds and tds will be deducted by the insurance co. under sec 194DA if net income from maturity exceeds 1Lakh @ 5%
Sir, what does mean the net income?
Net income as in they will deduct tds on the amount of maturity proceeds (including bonus) after deducting the premium paid by the assessee if the maturity is taxable i.e. not exempt under 10(10C)

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details