K Ramakrishna Rao (Asstt audit officer) (40 Points)
09 October 2016
CA Saurav Somani
(CA - practice)
(7944 Points)
Replied 09 October 2016
maturity proceeds are not taxable in general. However, there are certain conditions. For Lic policies made before1.4.12, if the premium for any year exceeds 20% of the sum assured..then the maturity proceeds (entire) will be taxable. In such a case the LIC corporation will deduct tds from such proceeds. you have to show the proceeds in other sources.
For policies made on or after 1.4.12, the limit is 10%.
K Ramakrishna Rao
(Asstt audit officer)
(40 Points)
Replied 09 October 2016
Thank you so much Sir for the clarification.
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