Maturity proceed of lic

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2017 By applying provisions of the income tax act, maturity proceed of life insurance policy is taxable, my question is whether premium paid on policy will be excluded from maturity proceed for computing taxable income?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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14 September 2017 No. There are no provisions to exclude premium paid from maturity proceeds

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2017 Thank you sir for your reply but I had read a circular No. 7/2003, dated 5-9-2003 of the income tax act as per which premium paid will be excluded from maturity proceed for computing taxable income... Please give me guidance with respect to that...

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