Tax on LIC maturity

Prasanth Rajan (Engineer) (55 Points)

19 March 2008  

I was wondering if there is tax computed on LIC returns (be it final maturity or mid-term returns like money-back policies)? Are they taxed at all? If yes, under what - as other income? Is the tax on the basic sum also (in case of final maturity) or only in case of vested bonus only? If yes, how is this handled for money-back policies?

 

Thanks in advance.

Prasanth