Pre maturity proceed of lic, if exempted, disclosure in itr.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 March 2016
Sir,
I took out a ICICI Prudential LIP in 2008 having yearly premium of Rs. 20000. I paid the premium for 2008, 2009 & 2011. (Not paid in 2010). The premium payable is deductible u/s. 80C. Now i have prematured the policy in 2015 & received Rs.96540/- & since the amount recd is expempted u/s. 10(10D). I just wanted to know which amount to be shown as Exempted Income in ITR & why i.e.
a) Total Maturity Proceeds - Rs. 96540/-, or
b) Actual Earned Income = Total Maturity Proceeds - Total Premium Paid = 96540 - 60000 = Rs. 36540/-.
I took out a ICICI Prudential LIP in 2008 having yearly premium of Rs. 20000. I paid the premium for 2008, 2009 & 2011. (Not paid in 2010). The premium payable is deductible u/s. 80C. Now i have prematured the policy in 2015 & received Rs.96540/- & since the amount recd is expempted u/s. 10(10D). I just wanted to know which amount to be shown as Exempted Income in ITR & why i.e.
a) Total Maturity Proceeds - Rs. 96540/-, or
b) Actual Earned Income = Total Maturity Proceeds - Total Premium Paid = 96540 - 60000 = Rs. 36540/-.
05 March 2016
U/S 10 (10 D) the maturity proceeds received from a life policy is exempt from tax. In your case you received Rs.96,450/-. This is the amount to shown in the ITR as exempt amount.
Incidentally the premiums paid by you too were tax free. In computing your taxable income, the premium paid was deducted. Therefore in the year of payment you had made payments from untaxed income. On maturity, you received the premiums paid (untaxed) plus revertionary bonus and other bonuses. Hence the entire amount froms part of your total income this year, but is exempt u/s 10 (10 D).
Incidentally the premiums paid by you too were tax free. In computing your taxable income, the premium paid was deducted. Therefore in the year of payment you had made payments from untaxed income. On maturity, you received the premiums paid (untaxed) plus revertionary bonus and other bonuses. Hence the entire amount froms part of your total income this year, but is exempt u/s 10 (10 D).
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Querist : Anonymous
Querist :
Anonymous
(Querist)
21 June 2016
Thanks a lot sir.. !!
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