I have an annuity policy with the Life Insurance Corp of India. This was purchased many years back with my post-tax income. I am already receiving the annuity periodically. All these years, I was treating this as fully taxable income when filing my tax returns. Recently I have come across articles about Exclusion Ratio in relation to taxation of annuities, e.g. see the CAclubIndia article Annuity Taxation.
I have tried finding out the exclsion ratio and also contacted LIC, but have drawn a blank so far. The people I contacted seem to be unaware of such a term.
My questions:
- Any guidance on how to find out the exclusion ratio for my LIC annuity policy? Does any one have any experience (success) in this regard?
- Where (in which section) in the incometax act will I be able to find the mention of excluion ratio in relation to taxation of annuities?
Thanks
CAclubindia
