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Section 10(10D)

VINIT AGARWAL (Article) (105 Points)

23 July 2011

CAN ANYONE TELL ME THE TAX TREATMENT

EK LADY HAI UNHONE 5 YEARS PEHLE EK 45000 KI LIC KARAI UNHONE JAB 45000 PAY KER DIYE. UNHONE KAHA AAPKO 5 SAAL BAD (IN A.Y.2011-12) FIXED AMOUNT 51000 MIL JAYENGE. AB WO 51000 RECEIVE HUE HAI. ISKA KYA TREATMENT HOGA. I M CONFUSED IN SEC. 10(10D) PLEASE HELP ME.

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7 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 23 July 2011

That amount is exempt u/s 10(10D) dont worry much on that

suman (Auditor ) (388 Points)
Replied 23 July 2011

it will be exempted u/s 10(10D) . only if your clint has paid premium which was more than 20% of sum assured in a single year.than answer will be diffrent.

VINIT AGARWAL (Article) (105 Points)
Replied 23 July 2011

MR PRAVEEN CAN U EXPLANE? GIVE ME REASONS PLEASE.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 23 July 2011

Originally posted by : VINIT AGARWAL
	CAN ANYONE TELL ME THE TAX TREATMENT EK LADY HAI UNHONE 5 YEARS PEHLE EK 45000 KI LIC KARAI UNHONE JAB 45000 PAY KER DIYE. UNHONE KAHA AAPKO 5 SAAL BAD (IN A.Y.2011-12) FIXED AMOUNT 51000 MIL JAYENGE. AB WO 51000 RECEIVE HUE HAI. ISKA KYA TREATMENT HOGA. I M CONFUSED IN SEC. 10(10D) PLEASE HELP ME.

1st of all i have to explain you that there is no such scheme in LIC of india to return the sum in 5 years.

look into the policy bond , tax treatment is given there,

i presume the term LIC is not a proper word used for insurance cum investment bonds of other comapnies.

if its policy bond issued by LIC under endowment or whole life ...then its fully exempted u/s 10(10D) .......the premiums paid were not eligible for deduction u/s 80C , exeeding 20% of sum assured value.

Paras (Mcom,CA Final) (122 Points)
Replied 24 July 2011

Originally posted by : U S Sharma
	Originally posted by : VINIT AGARWAL CAN ANYONE TELL ME THE TAX TREATMENT EK LADY HAI UNHONE 5 YEARS PEHLE EK 45000 KI LIC KARAI UNHONE JAB 45000 PAY KER DIYE. UNHONE KAHA AAPKO 5 SAAL BAD (IN A.Y.2011-12) FIXED AMOUNT 51000 MIL JAYENGE. AB WO 51000 RECEIVE HUE HAI. ISKA KYA TREATMENT HOGA. I M CONFUSED IN SEC. 10(10D) PLEASE HELP ME. 1st of all i have to explain you that there is no such scheme in LIC of india to return the sum in 5 years. look into the policy bond , tax treatment is given there, i presume the term LIC is not a proper word used for insurance cum investment bonds of other comapnies. if its policy bond issued by LIC under endowment or whole life ...then its fully exempted u/s 10(10D) .......the premiums paid were not eligible for deduction u/s 80C , exeeding 20% of sum assured value.

agreed

ANJANEYULU (STUDENT) (24 Points)
Replied 25 July 2011

Dear Vinit,

I dont know about the LIC policies.

But the amount paid as premium for only one year (New IRDA rule says that all premiums to be mandatorily paid for atleast 5 years) will earn savings account interest rate (currently 4% as per RBI) and will be collected after 5 years along with principle and interest.

The interest so earned is exempted under the section 10 (10D)

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