Tax Treatment on Moneyback policy

Tax queries 17333 views 2 replies

Dr. Jones

Director

253 Points Joined July 2009

Hi,

I recently received money from my LIC money back policy.

Is this taxfree? If not, under which head it will be included as income?

Thanks!

Replies (2)

B K Agrawal

F.C.A.

44 Points Joined June 2009

Dear Doctor,

Money received on money back from LIC is totally exempt u/s. 10 ( 100 d of I.T. Act 1961

enjoy the receipts

Yes, it is completely Exempt, as you are only getting your principle amount back, like a pre-mature Fd or withdrawal from PPF. You might have also received a Letter from the LIC for Tax purpose, stating that the same is exempt. Please do not forget to declare this amount in Returns as "Tax Free incomes"