06 August 2015
I have taken a policy from LIC of Rs. 100,000 and received of Rs. 150,000/-(two equal installment) from LIC as maturity amount and LIC deducted tds @ 2 % on Rs.75000/- (tds amount Rs. 1500/-). My question is whether the amount received from LIC is taxable or not? If taxable, then what amount taxable i.e. Rs.150,000/- or Rs. 50,000/- (150000-100000).
06 August 2015
As per section 10 (10D) of Income tax act, if you were paying premium which does not exceed 10% of the sum assured if purchased before 1.04.2012 or 10% of sum assured of purchased after 1.04.2012 then your receipt is tax free, you will get a refund of the TDS amount or you will have to adjust this TDS towards other tax liability.
CAclubindia
