Dear Sir/ Madam,
My Client has received a LIP Maturity Amount from LIC. LIC has deducted TDS on the maturity amount. Please tell me whether Maturity amount received from LIC is Taxable or Taxfree. Please also tell me the reason for the answer. if It is Taxable then under which section & Which head, and if it is Taxfree then under which section.
If policy taken before March 2012 and premium amount is < 20% of sum assured then Tax free
If policy taken taken March 2012 and premium amount is < 10% of sum assured then Tax free
If not covered under 80U and 80DDB then taxability as above
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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