Mr. A has lic policy (Single Premium lic) which generates survival benefit in every three years. Lic has deducted tds on same which is reflecting in 26 AS of party. So how to show in the books of Mr. A. Please note that Mr. A has taken loan against premium so whether we should adjust against loan or show income separately in p&l a/c?
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SUm Assured 700000 Premium Paid 630000 Loan taken 540000
19 October 2016
TDS will be deducted by LIC at the time of maturity, if the policy is purely covering life of the assured the matured proceeds will be taxable under the head other sources, the loan amount he got will be shown as liability in the balance sheet if used for the purposes of business or profession ,the single Premium he paid is shown as investment in the asset side, the interest amount is shown as expense
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