I had taken a policy for Rs 2 lakhs in 2010 which matured in Dec 2016, and I received Rs 2,79, 990, for which there's a 1% TDS reflecting in my form 26AS.
Kindly clarify whether I need to pay any more tax on filing my returns.
Sarah Tharyan Fernandes (32 Points)
09 July 2017I had taken a policy for Rs 2 lakhs in 2010 which matured in Dec 2016, and I received Rs 2,79, 990, for which there's a 1% TDS reflecting in my form 26AS.
Kindly clarify whether I need to pay any more tax on filing my returns.
Poltu Ghosh
(Job)
(1865 Points)
Replied 09 July 2017
Bijo
(NA)
(65 Points)
Replied 10 July 2017
Dear Sarah, I believe Rs 2 lakhs was the sum assured and Rs 2,79,990 was the maturity amount. It's not clear what was the total premium paid for the policy. Your taxability also depends on the ratio between total premium paid and sum assured. Can you please provide details on total premium paid, which can help in answering your query.
Sarah Tharyan Fernandes
(32 Points)
Replied 10 July 2017
Sarah Tharyan Fernandes
(32 Points)
Replied 10 July 2017
Bijo
(NA)
(65 Points)
Replied 10 July 2017
Thank you for the clarity. In that case we need to know what was the sum assured, which could be written in the policy document or first premium receipt as sum assured or coverage or risk coverage.
In your case, Rs 2,79,990 is the maturity amount, which can be different from sum assured. As your policy is taken in 2010, your premium should be less than 20% of the sum assured for it to be tax free. If not, the entire maturity amount will be taxable as per your slab,
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