Proceeds from LIC with TDS

Sum Assured was 2 lakhs & annual premium was 21134. After paying 6 premium 21134 * 6 = 126804, the policy was surrendered. Proceeds received from LIC 108569 - TDS u/s 194DA 1086 = Net 107483/-.

Loss = 126804 - 108569 = 18235.

Pls guide, the taxability of the LIC proceeds. How to show in income from other sources? 

Replies (3)
Quick Summary
This discussion concerns the tax implications of surrendering a Life Insurance Corporation (LIC) policy where the premiums paid exceeded 20% of the sum assured, making the proceeds ineligible for exemption under Section 10(10D). The user received net proceeds after Tax Deducted at Source (TDS) and incurred a loss on the surrender. They are seeking guidance on how to report these proceeds and the TDS refund in their Income Tax Return (ITR), specifically within the 'Income from Other Sources' section, and whether the gross amount should be shown as income with premiums as expenses.

LIC Proceeds of INR 108569  is tax free . and you can get your tds refunded 

No liability there's as it is loss

How to show the amount received from LIC in ITR 2?

Should I show the gross amount as income & premium paid as expenses under income from other sources?

I understand that the proceeds is not exempt under 10(10D) as the premium paid was more than 20% of SA.

 

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