16 August 2024
Sir, A has taken HDFC Life Sanchay Par Advantage policy under which the Annual Premium is to be paid and Policy holder immediately starts getting monthly Survival Benefit. The amount arising on account of Maturity/Death would be paid to the Life Assured by the Policyholder.
Under the premises kindly advise whether : A. Is Annual Premium eligible for deduction under Sec 80C? B. Is monthly Survival Benefit Taxable? C. Will the amount receivable by the Life Assured taxable as and when the Maturity/Death Claim arises?
16 August 2024
1. Yes, 2. Not clear on that, depends upon the applicability of sec. 10(10D) eligibility. 3. Capital gains liability over maturity claim, but not taxable on death claim.
16 August 2024
Sir, Thank You for your kind advice! Maturity Claim in any case is infructuous since the term of the policy issued in 2020 is 76 years. Policyholder whilst taking the policy itself was 80 plus.
The gentleman could not possibly see through this whilst Insurance Advisor recommended the policy.
It seems the term of 76 years may have been calculated in the basis of age of life assured by the Policyholder. But even then if maximum term can be 40 years how a policy for a term of 76 years has been issued.
Shall go through the link sent by you.
Thank you once again. As always you have been very helpful.
16 August 2024
Here, Age of policy holder considered as 24 years in your case. Policy holder has option to choose 100-age as maximum years; so he can even choose less from the maximum say 40 or 60 years in this case, but not possible to choose 80 years.
CAclubindia
