Lic survival benefit
This query is : Resolved
19 October 2016
Hello friends
Mr. A has lic policy (Single Premium lic) which generates survival benefit in every three years. Lic has deducted tds on same which is reflecting in 26 AS of party. So how to show in the books of Mr. A.
Please note that Mr. A has taken loan against premium so whether we should adjust against loan or show income separately in p&l a/c?
Like
SUm Assured 700000
Premium Paid 630000
Loan taken 540000
Please guide.
Mr. A has lic policy (Single Premium lic) which generates survival benefit in every three years. Lic has deducted tds on same which is reflecting in 26 AS of party. So how to show in the books of Mr. A.
Please note that Mr. A has taken loan against premium so whether we should adjust against loan or show income separately in p&l a/c?
Like
SUm Assured 700000
Premium Paid 630000
Loan taken 540000
Please guide.
19 October 2016
TDS will be deducted by LIC at the time of maturity, if the policy is purely covering life of the assured the matured proceeds will be taxable under the head other sources, the loan amount he got will be shown as liability in the balance sheet if used for the purposes of business or profession ,the single Premium he paid is shown as investment in the asset side, the interest amount is shown as expense
19 October 2016
In my opinion As the policy will be cease to exist on maturity, the recognition of income in other sources will be suffice.
20 October 2016
thanks mam for replying..
Policy Start date 28/11/2013
maturity date of policy 28/11/2022
we r paying interest in every six months & book as a interest expense.
How to deal with it?
Policy Start date 28/11/2013
maturity date of policy 28/11/2022
we r paying interest in every six months & book as a interest expense.
How to deal with it?
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