Hello All,
Incase an assessee receives LIC maturity which is not exempt u/s 10(10D), is tax payable on the gross amount received or net i.e maturity value - premium paid?
Please provide reference to case laws/circulars, if any.
Thanks in Advance.
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Taxability of insurance maturity receipts
Replies (4)
Quick Summary
Under section 194DA of the Income 1961 TDS is applicable , if not exempt under 10(10D) of the Income tax act , however have you checked certain exemption under this section ?.
On total amount which you rec'd (https://youtu.be/GTD2oKnD3Pw)
Please check the policy issue date and the premium you have paid. When the premium paid on a policy exceeds 10% of the sum assured for policies issued after 1 April 2012, and 20% of the sum assured for policies issued before 1 April 2012, any amount received on maturity of a life insurance policy is fully taxable. You will have to disclose the amount received under the head 'income from other sources' and pay tax according to your income tax slab.
Incase an assessee receives LIC maturity which is not exempt u/s 10(10D), than [ Maturity Amount less all Premium paid ] by you is taxable as income from other sources. and you can claim TDS which is deducted, in your IT return.
Total/Gross amount is not taxable, only Income portion is taxable.
Total/Gross amount is not taxable, only Income portion is taxable.
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