Tds lic maturity amt

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one of my client got LIC maturity of on which 1% tds has deducted by LIC.

so now what amt has to taken as taxable income from other sources.
Replies (18)
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
Is LIC maturity taxable?
Yes, 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.
In other case it's exempt.
But 26as income should match with income tax tax, then how it is possible ??
Yes, It's required to be matched
But in case of maturity of policy 26AS suppose to show total maturity amount where as taxable income is Maturity amount less all Premium paid, you are required to show that in your Income, there is no need to match
if it's nature before 01.09.2019 than its the case.
What if after 1.09.2019

If your policy matures before 01.09.2019 than its happen (i.e mismatch)
You maturity is before or after?

After It was in Dec
If it's in in December 2019, than TDS deducted is 5% of Maturity value less all Premium paid i.e taxable value.
Pls check..
Thank you so much
You'r most welcome
Full maturity or surrender value is taxable without deducting premiums paid under the policy. Because premium up to 10% of capital sum assured is assumed to be taken under 80c in the year of premium payment
"Maturity and bonus amount for insurance is exempt under Sec 10 (10D). However, when the premium paid on the policy exceed 10% of the sum assured for policies issued after 1 April 2012 and 20% of sum assured for policies issued before 1 April 2012- it is taxable fully as per the person's tax slab, Thus there is no escape from tax on insurance proceeds if the premium paid exceeds 20% or 10% or 15% of the sum assured.
As per Union Budget 2019 wef 01.09.2019 tax at the rate of 5% will be deducted on net income i.e. maturity amount minus all premiums paid thus only the differential amount is taxable
I doubt for TDs purpose only it is net sum assured but for computation in the return full proceeds is taxed. The amount gets reflected in OS schedule from forn 26AS


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