Taxation of bima bachat policy

Tax queries 528 views 4 replies

30 Points Joined July 2016

I have purchased a LIC Bima Bachat Policy in the year 2013 with maturity date of 2022 and paid single premium on it.

Now, in the year 2016, i have surrendered the policy.

I want to know about its taxation.

It will be taxable or not?

Or if it is exempt from taxation, then in which section it is exempt?

Replies (4)

2 Points Joined June 2017

It not taxable exempt u/s 10

30 Points Joined July 2016

section 10 is itself for exemptions but under which clause it will be exempted?

30 Points Joined July 2016

section 10 is itself for exemptions but under which clause it will be exempted?

Job

1865 Points Joined April 2017

Please refer section 10 (10D). Your whole proceeds from the said policy will be taxable. TDS may also apply on proceeds if exceed Rs. 1 lakh.

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