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Tax implication on amount recieved on maturity of LIC

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harika

student

31 Points Posted on 28 March 2022

The single payment of LIC Rs.25,00,000 made by parents in the name of Mr. A when he was minor , when the policy amount Recieved after maturity MR. A is major .

In whose hands the matured policy amount is taxable?

and what is its tax implication?

Replies (5)

Quick Summary

This discussion clarifies the tax implications for a LIC policy maturity amount. When a policy purchased for a minor matures after they become a major, the tax liability generally falls on the recipient, Mr. A. The tax treatment also depends on whether the policy commenced before or after April 1, 2012, with specific clauses applicable to older policies.