Can we deduct previously paid insurance premium amounts from the maturity amount recieved, inorder to decrease taxable income????
The plan is HDFC SL Sampoorn Samridhi.
Those are already taken as deductions in previous 5 Years u/s 80C
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Taxability of insurance maturity amount
Replies (8)
No.
(for policies where sec. 10(10D) of IT act, is not applicable)
Have they deducted TDS of 2%? Is it 2% of the amount received by you in your bank?
yes they deducted TDS u/s 194 DA @ 1%
Thanq sir. That amount is not satisfying sec 10(10D) conditions but the insurance company advised my client to deduct previously paid insurance premiums from that maturity amount.
note: Insurance company just advised & they clearly mentioned not to follow that blindly without tax consultant's opinion
If it is taxable & deductions were taken then full amount is taxable.
If no deductions were taken only the gain part is taxable. Because it becomes double taxation in this case.
If no deductions were taken only the gain part is taxable. Because it becomes double taxation in this case.
deduct paid premium
thanQ guys. Can you please mention the section on which basis we can deduct those paid premiums ? Because I want the source for much clarity to face further notices from department if any.
read circular no 7 of 2003
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