Tax implication on lic matured amount
Swady (Digital World) (115 Points)
10 April 2017Swady (Digital World) (115 Points)
10 April 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(195421 Points)
Replied 10 April 2017
Generally, the proceeds on maturity or upon surrender of the policy are tax-exempt under Section 10 (10D).
In case the proceeds are taxable, LIC will deduct 2% TDS from the maturity amount. The provision will not be applicable in cases where the proceeds from a life policy in a year are less than 1 lakh.
No need to invest in 3 year lock in periof of ELSS, unless you want to save tax u/s. 80C. For more options take advice of any investment expert.
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