Tax on LIC maturity amount

hi,
I started a policy in 2012 with a premium od 102000 per year for six years.
suk assured was Rs 600000
The Policy got matured in 2018 and ai received Rs 725000 as maturity payment.
Now do I have to pay tax on this whole amount which seems little odd to me.
or on the profit amount which comes out at Rs 1lakh accounting near 6 lakhs I paid as premium.
Replies (3)
Quick Summary
This discussion clarifies the tax implications of LIC maturity proceeds. If your policy was issued before April 1, 2012, and your annual premium was less than 20% of the sum assured, your maturity amount is typically tax-exempt. For policies issued after this date, the threshold is 10%. Importantly, tax is only applicable on the net gain (profit), not the entire maturity amount received.

If the policy is issued before 1.4.12, the maturity proceeds is exempt if the annual premium is less than 20% of the sum assured. post 1.4.12 it is reduced to 10%. If your policy is issued before 1.4.12, the income is exempt from tax, since the annual premium is less than 20%. 

Thanks for the prompt reply But can you suggest on how much amount should I have to pay tax. entire maturity amount or the net gain

Only the net gain should be offered to tax

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 September 2026
Work at home

Lottery.sambad.tv

Bhopal

Others

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details