Vimal Khatri (Tax Consultant) (115 Points)
30 July 2018Dear 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.
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 30 July 2018
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
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