Lic money back amount taxable??
I have taken a money back policy from Lic for 20 years in Mar 2012.Now I am about to receive money back amount after 4 years. Can anyone tell me whether tax will be deducted on the payment received from LIC.
Replies (3)
As per Section 10(10D) of the income tax Act, in case of policies issued after 1-4-2012 in case premium for any year exceeds 10% of the sum assured, whole of the money received on maturity of such policy will become taxable.(20% before that) So you need to check if your policy premium exceeds the limit
Thanks for the reply.
as I have mentioned I have taken the policy in Mar 2012 nd premium paid is less than 10% of sum assured .i will get money back amount in this year Apr 2016. Will that be taxable? If yes then please tell me the treatment.
It will not be taxable. Just disclose it as exempt income in the return.
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