One of my clent who is an NRI took Unit Plus 2 Single premium policy of SBI Life. The sum assured is Rs. 12,50,000 and the period of Policy was 10 years with a single premium of Rs. 10,00,000. The policy was started in 2006. He has received a sum of Rs. 35,00,000 in May 2016 on maturity on which 30.9% of Tax has been deducted u/s 195. Now he wants the return to be filed. How should the income be brought to tax and file the return for AY 2017-18?? Please advice
As the premium exceeded 20% of sum assured, whole maturity proceeds is taxable in the year of receipt.
Being NRI all the income earned in India including the maturity amount is taxable in India. File the return, offer the maturity amount under IFOS, calculate tax as per slab and claim for refund, if any.
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