Lic pension

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Is pension received of Rs. 20000 from LIC Jeevan suraksha policy is taxable for senior citizen?
Replies (16)
It is not taxable
Hello Bhola Nath Roy,
LIC pension received is exempt from Tax for all individuals and HUF.
Thanks and Regards,
RA
Exempt
Pension rceived from Jeevan Suraksha is exempted u/s 10(23 AAB)
Exempt
As per section 10(23AAB) it is exempted
LIC/any other approved fund may pay pension to an individual from the funds contributed by the employer. Commuted pension received from such fund is exempt whereas uncommuted pension from such fund is taxable under the head 'Income from Salaries'.
@ Krishna Chaudhary. Completely disagree with you , there is specifically governing Section 10(23AAB) in respect of LIC Pension.
@ rashi Gandhi.
un computed pension is taxable . Read the whole section..

Clause (23AAB) of Section 10 exempts from income-tax the income of the fund set up by LIC or any other insurer under a pension scheme. It does not apply to the income of the pensioner who receives the pension from such funds. Thus, the un-commuted pension received from LIC’s pension fund is not covered by Section 10 (23AAB) and the same is taxable in the hands of the recipient. 
Disagree with you as he is asking ab out jeevan suraksha policy only and as per the lastest rules and regulations this policy is expemted as per sec 10(23AAB)
moreover every policy has different rules and regulations and treatment is different as per the policy
now coming to commuted and non commuted pension they are different and rules are also but that is not related to the above person asked question
@ ayusmita, what you doing madam. Read the bare act of Income tax act 1961.
Read sec 10( 23AAB),
it exempt the fund of LIC

Below are few references..

Returns from LIC Jeevan Surksha is taxable. It is a pension plan in which 33% can be withdrawn as commutation and the balance 67% goes for pension. An amount which is paid like pension as per policy rules is taxable.

Policy holder has to add this amount and file Income Tax if earning is more than the non taxable slab. Under this plan as far as policyholder lives, pension would be payable. At the end when the policy holder is no more, balance would be paid to the nominee and that is non taxable.

other ref from Google search..

LIC's Jeevan Nidhi and Jeevan Suraksha Plans are eligible for deduction under Section 80CCC of the I-T Act. ... Pension received from annuity or amount received upon surrender of annuity - including interest and bonus - is taxable in the year of receipt, according to the LIC website.

conclusion....

it is a matter of dispute.

@ bhola nath Roy

pension received is only 20000. this is not so big for huge discussion. claim it as exemption or make it TAXABLE as you wish. Don't worry there is almost Zero chances for assessment for Income.
@ Krishna Chaudhary

Sir Google knowledge is not always correct. Just read out the policy documents of LIC Jeevan Suraksha Policy
The life insurance industry collectively has 15166.47cr of unclaimed money which belongs to policy holders as the reason IRDAI have asked the LIC company to make easy provision to reach out the holders and pay the dues as well as IRDAI himself is talking steps to ensure that holders get their money
hence he changes the rules regulations and treatment as well as taxation of each and every policy and same being declared as well....
moreover premium paid under life insurance policy are exempted from tax under sec 80 and 1/3rd of the maturity proceeds are exempted from tax under sec 10 (10A) but only 25%can be withdrawn on maturity pension is taxable if received
again IRDAI himself approved as per section 10(23AAB ) of the act that the income of the fund maintain under jeevan suraksha which is now in new version as per the changes for the above reason is totally exempted from income tax
even if you see the last page of policy where's taxation part is written there's they have stated where's it will be deducted as per which section and how much and what will be the taxation part

every policy has has their own rules and regulations as I say and all are mentioned in the booklets that is given to the policy holders

moreover annuity treatment is different when come to pension scheme as per IRDAI new regulations
for commuted and uncommuted treatment is different

@ bhola nath just go to your booktel taxation part and check out the treatment and do as per it
as per my opinion it is exempted

The question is not clear whether it is commuted or uncommuted pension. Uncommuted pension is always TAXABLE.

After reading Sec 10(23AAB), I realised that sec is not at all applicable to his query..Section 10(23AAB) talks about tax exemption of INCOME earned by a FUND SET UP BY LIC or other insurer and not about the taxability of pension received by a person from such fund.

Is it one time pension or do you receive it periodically? Can you please upload the terms and conditions of the policy?. Lets find out. 


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