One case of my relative. He received payment of claim of crtical illness under Secure mind policy, which is home loan protector policy.
After 25 installments, his loan was fully repaid by insurer.
Out of lumpsum amount payment, the balance payment over and above the principle outstanding was paid to him.
Is the total amount taxable.???
Check the insurance policy terms, and TDS deducted if any.....
Only after verification of the terms, one can decide its tax-ability.....
ICICI Secure Mind policy wording is not showing anything about Tax on claim payment. No TDS has bren deducted. The insurer has paid a lumpsum amount (sum insurred). Rs. 25 lacs paid to Home loan acct and Rs. 1.5 lacs paid to Insured.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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