18 July 2016
Dear Sir, An Assesse has received Rs. 156708.00 as maturity proceeds of LICI and TDS Deducted Rs. 3134.00, for A.Y. 2016-17. But we know that maturity proceeds of LICI is exempt from tax so why TDS has been deducted on this maturity proceeds of LICI and it if it is required to be shown then whether the full amount received will have to be shown or not. Please explain it clearly as to why TDS has been deducted and why income has to shown.
Please give your valuable reply which would be very much helpful for the assesse to assess tax as 31st July is very near.
18 July 2016
The Provisions of section 194DA are applicable on those life insurance policies (and not on defered pension plans) policy payments where such payments are not exempted under section 10(10D). It means in your case full maturity proceeds would be taxable under head other sources and deducted TDS can be claimed while filling return.
CAclubindia
