THE MATURITY AMMOUNT OF INSURANCE POLICY IS TAXABLE IF ANYTIME THE INSURANCE PREMIUM EXCEEDS MORE THAN 20% OF THE SUM ASSURED.
SO,WHAT PREMIUM HAS TO BE TAKEN INTO ACCOUNT WHILE CALCULATING 20% OF THE SUM ASSURED....IS IT THE YEARLY PREMIUM PAID ONLY OR THE TOTAL PREMIUM PAID DURING THE ENTIRE POLICY PERIOD?
ALSO,IF IT IS VALID ON SINGLE PREMIUM POLICIES ONLY OR ALSO ON THE ANNUAL/QUARTERLY PREMIUM POLICIES TO?
THANKS.....
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TAX ON INSURANCE MATURITY
Replies (1)
Dear Mr.Behal if ay premium exceeds 20% of the sum assured the matured received agaist such policy becomes taxable moreover the premium to be considered is the gross annual premium for one year whether it is quarterly or halfyearly for that matter and not the total premium paid during the tenure of the policy.please go thru section 10 which deals with it very clearly.its ays about the annual premium.
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