01 January 2010
i have invest rs.1 lakh in lic policy at one time premium can i will get ded. u/s.80 for the same . what shall be the consequences at the time of maturity ? whether proceeds along with interest is chargeable to tax?
As per the provisions of section 10(10D)if the premium paid is more than 20% of the sum assured in any of the year, then at the time of receipt of money from the insurance company, the whole of the sum received is subject to tax.
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