banner_ad

Sec 194da tds deduction on sbi shub niwesh insurance policy maturity proceeds at the rate of 1%

Tax queries 354 views 2 replies

One of my colleague received notice from Income Tax department for AY 2017-18 showing variance in Income because of Maturity proceeds from SBI Shubh Niwesh Rs.130900/- and TDS dedn. u/s 194DA Rs.1309 in 26AS.   He was investing Rs.30000/- each year after five year he received maturity Rs.130900/-

While filing ITR2 AY 2017-18  SBI Insurance maturity amount shown as Exempt Income but In 26AS showing TDS deducted on maturity proceeds at the rate of 1% .

Whether this Insurance policy maturity proceeds received  Exempt or Taxable please guide. If taxable then  under which section it should be disclose in ITR2 so that NO notice should be received from IT Department. 

Valueable reply are highly appreciated

 

 

Replies (2)

Broadly speaking, the insurance terms having premium (paid per annum) amount less than 1/10th of Assured amount are only exempt u/s. 10 of IT act.

Secondly, the policies which are not exempt, the insurer deduct TDS over the surrender/maturity value. So, check the conditions once again; but it seems the exemption is wrongly claimed.

I was out of station. Belated Thanks Sir


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details