05 December 2009
Respected Friends, If any payments Recd. by Any person from LIC of India under any scheme, out of which the surplus amount if any recd. by such person, is it Taxable under Income Tax Act. 1961 e.g. say a person is getting Rs.36000 on the Maturity of any LIC Policy, out of such Amount Rs.30000 is his own contribution, is the surplus amount of Rs.6000 Taxable in his hand. Thanks Debashis
Any sum received under LIC policy including maturity bonus etc is non-taxable.
From AY 2004-2005 premiums paid in excess of 20% of the Sum Assured will not be eligible for Tax free returns under section 10(10D) except in the case of death.
All the benefits payable under a Life Insurance policy are tax free.
However in cases the premium paid in excess of 20% of the capital sum assured within a year, benefits paid excess of premiums will be taxable.
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