Dear friends,
I have a doubt with respect to the maturity proceeds received/receivable from any life insurer by the insured person.
Life Insurance premium paid by an induvidual or by the HUF on the life spouce or child (minor or major) or on the life any family member of the HUF is exempted up to 20% of the premium paid on the capital sum assured. so single premium policies are not eligible for this deduction. Am i right?
Then, Could any body please tell me what is the
1. Tax treatment on Maturity proceeds received by the insured person regarding the single premium policies and for the policies on which 20% of the premium is enjoyed as deduction earlier by the individual or HUF.
2. Is there any obligation on the assessee to pay tax on those maturity proceeds?
3. Is there any obligation to deduct tax on such income by the insurance provider, if yes, what is the applicable rate of TDS?
Please clarify my doubt at an earliest.
Regards,
Your friend.
CAclubindia
