Vineet Aggarwal (Article Assistant) (144 Points)
28 December 2011Hello Friends i need your suggestion on this issue
Whether amount recd. on maturity on LIC is taxable or not?
rakeshkuma
(B.COM CA FINAL)
(43 Points)
Replied 28 December 2011
if the amount received from LIC before 5 years (i.e. pre-withdraw) , it is taxable.
otherwise not.
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 28 December 2011
Dear Vineet,
The answer is NO it is not taxable under income tax.
It is exempt u/s10 (10D)
Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy, including the sum allocated by way of bonus on such policy is exempted from income-tax. However any sum (not including the premium paid by the assessee) received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured will no longer be exempted under this section.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 29 December 2011
| Originally posted by : RAJESH CHOUDHARY | ||
 |
Dear Vineet, The answer is NO it is not taxable under income tax. It is exempt u/s10 (10D) Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy, including the sum allocated by way of bonus on such policy is exempted from income-tax. However any sum (not including the premium paid by the assessee) received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured will no longer be exempted under this section. |
 |
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 December 2011
LIC maturity proceeds are simply does not consist part of income, its exempted u/s 10(10D), including survival benefits and death claims.
However commuted annuity under jeevan dhara, jeevan akhay (pension plans)and keyman insurence has its own set of exemption norms, please refer the polcy doeuments for actual exemption terms and quantam.
Bhanu Prakash Rao
(Think Beyond Stay Ahead...!)
(1064 Points)
Replied 29 December 2011
Agree with Rajesh.....
RONAK DARJI
(CA FINAL)
(382 Points)
Replied 29 December 2011
No,Maturity amount is not taxable...
Because whatever amount comes at maturity by LIC is totally exempted...
Regards,
Ronak Darji
Meera Shanker
(Student)
(70 Points)
Replied 07 July 2015
My insurance policy does not come under the exemption of 10(10D).I want to know whether the tax is payable on the entire proceeds (or) proceeds-premium.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 07 July 2015
| Originally posted by : Learner | ||
|
My insurance policy does not come under the exemption of 10(10D).I want to know whether the tax is payable on the entire proceeds (or) proceeds-premium. | |
you have to look into the premiums payment and any claim filed on the premiums, in common words entire proceeds is taxable in the year of receipt. if sec 10 is not applicable
Partha Mukherjee
(Associates)
(23 Points)
Replied 22 July 2015
For LIC Maturity under what Should be repoted as Exampted Income -
Total Maturity Value
or
Total Maturity Value minus Amount Paid as Premium.
Thanks
Anand
(article assistant)
(23 Points)
Replied 28 December 2016
Which form to be used to file Income tax return in case of Income from LIC policy maturity and the assesse(Individual) has even business income.
Meera Shanker
(Student)
(70 Points)
Replied 29 December 2016
| Originally posted by : Anand | ||
|
Which form to be used to file Income tax return in case of Income from LIC policy maturity and the assesse(Individual) has even business income. |
|
ITR 4
Aditya Tayal
(2 Points)
Replied 13 July 2018
Sir,
Under which head of Income the amount received on maturity of LIC, which is not exempt under section -10(10D), will be computed and how tax would be computed on the same.
Thanks in advance
CAclubindia
