Section 194d tds done so whole amt to be included in income

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2016 One of my client had invested in a LIC policy so on maturity the whole amount has been received after deducting TDS @ 2% under Section 194 D. Now, the question arises as to whether the whole amount on which TDS has been done has to be included as income or only incremental amount ie bonus amount has to be included as income and return has to be filed. Lets say if he has invested Rs. 150000 in year 1 and on maturity he has received 198548 ie after deducting tds of Rs. 4052 on amount - Rs. 202600. So whole Rs. 202600 has to be included in total income or only Rs. 52600 ie profit earned on that policy. Pls guide.

Gokul Sharma

Gokul Sharma (Expert)
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02 July 2016 when condition of 10(10)d is not satisfied than LIC co deductes tds ..... and when tds deducted on LIC maturity full amount to be taxable. it's better to check the papers that condition of 10(10)d satisfying or not.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2016 I have checked the policy document, but the insurance coverage is less, so TDS has been deducted. But my client had invested only 150000 and he has received Rs. 202600. So in including the income from other sources, i need to calculate tax on Rs. 52600 or 202600. As the amount invested was paid from taxable income and on it the client has already paid the taxes, so once again it has to pay tax on full amount? Kindly reply.

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