13 February 2018
Hello Sir, I know about 2% TDS on insurance maturity u/s 194 (A). let me clarify How much tax should be payable on such case of maturity? What kind of income it is called? Why the whole amount of maturity (including Sum Assured/premium paid for policy term) is to be shown as income of requisite FY?
13 February 2018
Under section 10 (10D), maturity proceeds received under a life insurance policy are exempt from tax. However, the benefit is not extended to policies where the annual premium exceeds 10% (20% in case of policies sold prior to April 2012) of the sum assured.
CAclubindia
