Survival benefit from lic of india

No...
The Survival benefit from LIC is Not Taxable income as per IT act.

But LIC of india has deducted IT @ 1% from the survival benefit amount during the month of August '19.

Check out the following conditions in Your policy...
The amount received as survival benefit in respect of life insurance policy is not taxable in accordance with the provisions of Section 10(10D) of the Income-tax Act, 1961 (The Act)  provided the premium payable does not exceed 10% of the actual sum assured.  You have not indicated the amount of sum assured in the query. However, in case the amount of premium of Rs 50,000 p.a. does not exceed 10% of the sum assured, the amount received under money back policy would not be taxable.

TDS on life insurance policy

Starting October 2014, if the amount received from a life insurance policy is more than Rs 1,00,000, on policies not covered under an exemption under Section 10(10D), then TDS @ 1% shall be deducted by the insurer LIC before making this payment.

Since LIC deducted TDS that means your policy is not covered under 10(10D).

TDS will also be deducted on bonus payments.

If the amount received is less than Rs 1,00,000, no TDS shall be deducted but the amount received shall be fully taxable for you.

You can claim credit for the TDS deducted in your Income Tax Return.

The union budget 2019 has proposed to amend the TDS on insurance policy proceeds to 5% on the amount of income comprised in the proceeds paid or payable upon maturity on or after 1st September 2019.

Yes... I agreed to Mr Kapadia Pravin view

Thanks Mr Raja 👍

The amount received as survival benefit in respect of life insurance policy is not taxable in accordance with the provisions of Section 10(10D) of the Income-tax Act, 1961 (The Act) provided the premium payable does not exceed 10% of the actual sum assured. You have not indicated the amount of sum assured in the query. However, in case the amount of premium of Rs 50,000 p.a. does not exceed 10% of the sum assured, the amount received under money back policy would not be taxable.

What is the meaning of "insurance policy proceeds" as described in Union budget 2019 where lic has to deduct 5% TDS during maturity? If premium paid is more than the 10 % of sum assured of a one time paid premium of a money back policy, is there any income tax rule whereby lic can deduct TDS on all the amount paid in regular interval as survival benifit as 15% of sum assured ( not Bonus) in earlier years of 3 years interval merging with maturity benifit in the year of maturity when the client is still alive? Kindly clarify.