about ded. u/s.80c

This query is : Resolved

sachin jain (Querist)
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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?

CA A RAMVEL

CA A RAMVEL (Expert)
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02 January 2010 Dear Sachin,

Happy New Year..

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.

Regards

Ramvel