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Lic money back amount taxable??

Rahul (MT) (102 Points)

05 March 2016

I have taken a money back policy from Lic for 20 years in Mar 2012.Now I am about to receive money back amount after 4 years. Can anyone tell me whether tax will be deducted on the payment received from LIC.

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3 Replies

(Guest)

As per Section 10(10D) of the income tax Act, in case of policies issued after 1-4-2012 in case premium for any year exceeds 10% of the sum assured, whole of the money received on maturity of such policy will become taxable.(20% before that) So you need to check if your policy premium exceeds the limit

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Rahul (MT) (102 Points)
Replied 05 March 2016

Thanks for the reply. as I have mentioned I have taken the policy in Mar 2012 nd premium paid is less than 10% of sum assured .i will get money back amount in this year Apr 2016. Will that be taxable? If yes then please tell me the treatment.