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Matured amount of Life Insurance Policy

Pooja Kotegar (14 Points)

24 September 2019

Is the amount matured amount received from life insurance policy taxable???

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3 Replies

Yogesh M (CMA) (73 Points)
Replied 24 September 2019

If the receipt is ROR is taxable

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Kapadia Pravin (17264 Points)
Replied 24 September 2019

If policy is under 10(10D) then wholly exempt.
From 1-9-2019 TDS is 5%. on net amount that is maturity value minus premium paid.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 24 September 2019

1. LIC maturity if covered u/s 10(10D), then the entire amount is exempt. See provision sec 10(10D) for further conditions in relation to the policy.
2. LIC maturity if not covered u/s 10(10D) will be taxable in the hands of the recipient under income from other sources and premium paid will be available as deductions.
3. 01.09.2019 TDS @ 5% will be deducted on the net maturity proceeds.
Please correct me if the above solution has an alternative view.