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Taxability of insurance maturity amount

Tax queries 400 views 8 replies

N satya krishna

Tax Practitioner

57 Points Posted on 18 August 2018

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

Replies (8)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 18 August 2018

No.

(for policies where sec. 10(10D) of IT act, is not applicable)

Vineet

MBA

77 Points Posted on 18 August 2018

Have they deducted TDS of 2%? Is it 2% of the amount received by you in your bank?

N satya krishna

Tax Practitioner

57 Points Posted on 18 August 2018

yes they deducted TDS u/s 194 DA @ 1%

N satya krishna

Tax Practitioner

57 Points Posted on 18 August 2018

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

Vineet

MBA

77 Points Posted on 19 August 2018

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.

Mohit

Others

68 Points Posted on 19 August 2018

deduct paid premium

N satya krishna

Tax Practitioner

57 Points Posted on 19 August 2018

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.