08 June 2011
I have been regularly paying during the month of May a sum of Rs.20,000/- starting from the year May 2007 on an yearly basis. I had encashed the said policy on 30.03.2011 and the total amount received as about 91000/-. I had claimed the payment under section 802C till last year. Please let me know the taxability of the payments and the additoinal Rs.11000/- Please explain in detail
08 June 2011
See you were paying and claiming the deduction is very different matter. You need to look up that whether the policy was a life insurance policy or not...as life insurance policy is usually of 15 years or such terms and and least also of 5 years....but if the policy is life insurance policy and amount that you have received has been received on maturity then the same is fully tax free....
08 June 2011
ANY SUM RECEIVED UNDER AN INSURANCE POLICY ON MATURITY OR OTERWISE IS EXEMPT PROVIDED THE PREMIUM PAYABLE DURING ANY OF THE YEARS DOES NOT EXCEED 20 PER CENT OF THE SUM ASSURED CA MANOJ GUPTA JODHPUR 09828510543
CAclubindia
