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Annuity income from PMVVY

29 June 2021

Sir,

Is accrued annuity income from PMVVY to be calculated in a FY for the purpose of tax liability, like interest income from bank FD?

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3 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 29 June 2021

Income from other sources, interest income is subject to TDS at 10%, the same is the case with accrued interest when it is credited to your account.

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NARENDER BHATI (42 Points)
Replied 29 June 2021

Annuity income for half yearly payout, Jan- Jun period credited on 01 Jul, do I have to calculate accrued annuity income from Jan- Mar for preceding FY tax liability? No TDS in PMVVY of LIC.

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 29 June 2021

The deposits made in the scheme are exempt from income tax under section 80C of Income Tax Act, 1961. However, the interest earned on the deposit is not exempt from income tax. Provisions of Tax Deduction at Source (TDS) are applicable to the Scheme.

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https://www.myinsuranceclub.com/life-insurance/companies/lic-of-india/pradhan-mantri-vaya-vandana-yojana

what ever your annual filings are, only they are considered. Yes, jan - March is your filing even I forgot you did not get paid out

https://cleartax.in/s/income-tax-on-fixed-deposit-interest