22 September 2017
Case : A person deposited 300,000/- under One Time Endowment Policy with LIC for a period of 5/10 years. In the same year, he had PPF deductions & other LIC deductions exceeding the limits of Section 80C. Suppose he had (150,000+300,000). So the one time policy plan was not allowed as deduction. Now after a period of 5/10 years, he got 474,150 as maturity proceeds after a deduction of 1% TDS as applicable. Now the taxable amount is 474,150 (Complete maturity proceeds) or 174,150 (474,150-300,000) is taxable.
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