In the first two years LIC premium for a total amount of Rs 24000 is paid by the wife for her life insurance and claimed rebate/deduction u/s 88/80C. Thereafter the premium for the remaining tenure of 8 years amounting to Rs 96000 is paid by the husband. The maturity value of Rs 2 lacs(appox) is received by the wife in her name. Whether the whole amount of Rs. 2 lac is the capital belonging to her or not.
How the same should be treated in accounts ?
Whether the entire income accrued on investing Rs 2 lacs received as maturity from LIC will be taxable in the hands of wife?
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