24 May 2010
An annuity policy was taken from LIC of India. Upon maturity, only 25% of the maturity value was paid and the balance will be paid as monthly annuity over a period of time as per the terms of policy.
We know that the lump sum amount received (25%) is not taxable. Pls tell me whether the monthly annuity received by the policy holder will be taxable or exempt. Kindly refer to the relevant provision and section.
CAclubindia
