Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

LIC corporate superannuation policy

22 January 2022

I have been saving in my corporate superannuation policy of LIC as member. Now on my resignation, if i withdraw the accumulated fund, does it suffer incometax?

Reply
Follow
Share

1 Replies

rama krishnan (12239 Points)
Replied 23 January 2022

INCOME TAX ON MATURITY OF LIFE INSURANCE POLICY

1. Policy issued on Any Date before 01/04/2003 -
Claims including allocated bonus paid to the nominee in case of death of the policyholder is
100% Exempted from Tax

2. Life Insurance policy issued on or after 01-04-2003 but on or before 31-03-2012 -
If Annual Premium exceeds 20% of actual sum assured -
Maturity proceeds/ surrender value received shall be taxable.

3. Life Insurance policy issued on or after 01-04-2003 but on or before 31-03-2012
- if Annual Premium up to 20% of the actual sum assured -
100% exempted from tax

4. Life Insurance Policy issued on or after 01-04-2012 - if
Annual Premium exceeds 10% of actual sum assured -
Maturity proceeds/ surrender value received shall be taxable.

5. Life Insurance Policy issued on or after 01-04-2012 - if
Annual Premium paid up to 10% of the actual sum assured -
100% exempted from tax

6. Life Insurance Policy issued on or after 01-04-2013 for an insured person who is suffering from a severe disability or disease specified in section 80U or section 80DDB of the Income Tax Act
If Annual Premium exceeds 15% of actual sum assured
Maturity proceeds/ surrender value received shall be taxable.