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
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