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.
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Tax on LIC maturity amount
Replies (3)
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
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