Maturity proceeds taxable or not

Tax queries 3722 views 7 replies

10th April 2014

Dear Members

One of my friend has a daughter born in the year 1992. My friend had made following investments in the name of his daughter when she was a Minor.

(1) LIC Policy, (2) HDFC Mutual Fund (3) SBI Children Growth Fund....etc

The daughter has now attained the age of Majority. The daughter is an Income Tax Assessee for the past two years. During the financial year 2013-14 all the above said investments had matured. The maturity proceeds have been credited to the bank account of the daughter.

My query is whether the maturity proceeds will be taxable in the hands of the daughter.

with regards

Muralidharan

 

Replies (7)

YES MATUARITY PROCEEDS WILL BE TAXABLE IN THE HANDS OF DAUGHTER.

You will get the benefit of basic exemption too and consequently the tax slabs.
I think proceeds from LIC and Mutual fund would me exempt u/s 10

Dear Murlidharan

 

maturity proceeds from LIC is exempt u/s 10 (10 ) (D)

LTCG on sale of Mutual Funds is exempt u/s 10 (38) subject to that STT has been paid. 

 

hence nothing is taxable in her hands as well as in the hands of father.

Depending on the insurance plan, maturity amount is exempt in her hands. 

I am not agree with jainender

Not taxable.


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