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Lic proceeds

196 views 3 replies

shalini

528 Points Joined March 2013

Hi,

I have a doubt. My client has got 1,48,000/- LIC maturity proceeds and TDS of 1% has been deducted u/s 194DA. Is it understood that if bank has deducted TDS that means this proceeds is taxable or should I check 10%/20% premium criteria to check the taxability of this LIC maturity proceeds.

Thanks

Replies (3)

Anmol Davesar

Chartered Accountant

818 Points Joined February 2013

you have to check these limits . as the tds is deducted , this means your maturity proceeds are taxable.

Guest

As per Section 10(10D) of the Income Tax Act, 1961 the amount of sum assured plus any bonus (i.e. the policy proceeds) paid on maturity or surrender of policy or on death of the insured are completely tax free for the receiver subject to certain conditions