Maturity amount of policies

"Commutation of pension on vesting date is tax free under section 10(10A) of the Income Tax Act,1961, amount received on surrender, as pension is taxable as income."

icicipru/oldproduct/PremierLife_Pension

Thank you for the reply.

So, out of Rs 15L,Rs 5 L will be exempt and Rs 10L will be taxed? I wonder why the TDs is not deducted.

The policy is not surrendered. It matured after 10 years. However instead of opting for annuity for 2/3rd part, he got the whole amount.

The maturity proceeds as a whole is exempt u/s. 10(10A), because invested in annuity product.

Now the pension amount will be taxable, so finally it is taxed on withdrawal and not over transfer to pension plan.

Actually nothing is invested in pension product or annuity. So no pension will be receivable. The client encashed the entired policy amount of 15L instead of 1/3rd.

As per the terms of the policy, it seems only 1/3rd tax-exempt. But when no TDS amount deducted, treat it as exempted u/s 10(10D).

Thanks for the prompt reply. Now a days the assessees are getting notices from Income tax officer -Intelligence & criminal Investigation whenever policies of huge amounts are matured. The onus is kept on the assesse to prove that the policy proceeds are tax exempt.

I wish all the policy products mentioned clearly the tax implications in all the possible scenarios w.r.t 80C or 10(10A)/ 10(10D)

For the same icici premier life unit linked policy, 1% tds have been deducted. so does that mean that whole amount is taxable or 1/3 amount is tax exempted. 

2) Are all ulip policies tax exempted.

plz clarify

for better analysis, may refer .... 

 Surrender-Value-Taxation-Do-you-have-to-pay-tax

THANK YOU VERY MUCH SIR.