surya kant gupta (Retired) (27 Points)
06 July 2018Invested a sum of 200000/- as single premium for LIC’s Wealth Plus Policy on 10 March 2010. Policy terms covered life risk for 10 years with sum insured 250000/-.
Policy matured on 10 March 2018 based on 8 year term with extended life cover until 10 March 2020. Received a net sum of 162270/- after TDS deduction of 1639/- on 21 March 2018.
Deduction of 150000/- was claimed u/s 80C for AY 2010 -11.
Question – is there a tax liability for AY 2018-19.
Tax payer is 72 years old.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(193718 Points)
Replied 06 July 2018
If that is the only income in FY 2017-18, no tax liability. You can get refund of the TDS deducted..
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(193718 Points)
Replied 06 July 2018
Tax liability over the aggregate income including the maturity proceeds to be assessed.
surya kant gupta
(Retired)
(27 Points)
Replied 07 July 2018
for a possible benefit of mere Rs. 50000/- (in case of death) and Rs. 10300/- tax saving u/s 80C in AY 2010-11 (with tax slab of 10% and max deduction of Rs. 100000/- u/s 80C), tax liability of 50648/- (tax slab of 30%) for AY 2018-19 seems to be very unfair deal for a senior citizen. On top of it a loss of Rs. 36091/- was caused on payment of maturity value after 8 years.
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