Enquiry on Income Tax treatment of LIC maturity proceeds

This query is : Resolved

Am Gos (Querist)
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31 May 2024 I had taken a 15-year BIma Bachat Policy for Sum Assured: Rs. 1,00,000/- on 11/10/2008 and paid single Instalment Premium of Rs. 79,213.00 with date of Maturity: 11/10/2023.
On maturity I have been paid Rs. 1,04,713.00 by LIC in my account with TDS deduction of Rs. 4500/-. (Reflected in AIS as "Receipts from life insurance policy-Section 194DA"by LIC: Rs. 90,000).
Please help me with the following queries: and advise me on how to reflect this in ITR1 filing for Income Tax for AY24-25:
a. What is the INCOME for FY 23-24 on this account?
b. How much is taxable income and
c. is it "Other Income" or other head?
d. What to do with the TDS already deducted?
Thanks for your help and support.An early response will be highly appreciated.
Yours Sincerely,
Prof. (Dr.) M. Goswamy

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 Here's a response to your queries regarding the LIC BIma Bachat Policy:

a. **Income for FY 23-24:**
The income from your LIC BIma Bachat Policy for FY 23-24 is the maturity amount received, which is Rs. 1,04,713.00.

b. **Taxable Income:**
The taxable income from the policy would be calculated as follows:
- Maturity amount received: Rs. 1,04,713.00
- Less: Premium paid: Rs. 79,213.00
- Taxable income = Rs. 1,04,713.00 - Rs. 79,213.00 = Rs. 25,500.00

c. **Nature of Income:**
This income is categorized as "Income from Other Sources" in your ITR1 filing.

d. **TDS Deducted:**
The TDS deducted by LIC is Rs. 4,500.00. You need to mention this TDS amount in your ITR1 form under the appropriate section for TDS details (e.g., TDS on income other than salary).

When filing your ITR1 for AY 2024-25, ensure you include these details accurately to reflect your income and TDS. If you have any more specific questions or need further assistance, feel free to ask!