Tds u/s 195 on proceeds of life insurance policy

Dear Sir,

An NRI having permanent residence of Canada also having Canadian Passport taken a Life Insurance Policy from State Bank of India many years ago.

Now said Policy get matured and Proceeds were paid by SBI after deducting TDS @ 30% u/s 195 on full policy amount.

Whether said deduction is correct ??

Can NRI file his Income Tax return & claim exemption u/s 10 (10D) so that TDS deducted will be claim as Refund ??

Please advise.

Thanking You in Advance.

Replies (1)

Since such sum is exempt from tax and TDS has been deducted, refund of TDS shall be claimed by filing return of income.

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