Tds u/s 194da

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2017 TDS of Rs 3900 is reflected in 26AS form for a receipt of Rs 195000 from Life Insurance Corporation of India. Normally LIC Maturity proceeds are exempt u/s 10(10D). Is this receipt of Rs 195000 tax free or taxable? If yes, then what are the conditions applicable for such taxability?

Expert : Anonymous

Expert : Anonymous (Expert)

15 January 2017 Dear Anonymous, Taxability of lic depends upon the type of plan. if premium paid is more than 10% of sum assured then the amount received on maturity is taxable. verify the policy details. you'll hopefully find your answer in it.

CA Suresh Jain

CA Suresh Jain (Expert)
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16 January 2017 As per following the deduction @2% is to be made a maturing value in not includible in total income
9[Payment in respect of life insurance policy.10
194DA. Any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not includible in the total income under clause (10D) of section 10, shall, at the time of payment thereof, deduct income-tax thereon at the rate of one (w.e.f. 1.6.2016- before this 2%) per cent:
Provided that no deduction under this section shall be made where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than one hundred thousand rupees.

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