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policy matured value

27 July 2019

under Exide life insurance my client has paid Rs. 50000 every
year for a period of 5 years. on matured amount TDs was deducted @ 20%. UNDER what head matured amount will be shown.

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3 Replies

prachi jain (105 Points)
Replied 27 July 2019

If policy was issued before 1 April and premium paid is not more than 20%of sum assured or
if the policy is issued after 1 April 2012 and premium paid is not more than 10% of sum assured, whole amount is exempt under section 10(10D) .
It will be offered under other source.

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 27 July 2019

1. If TDS was deducted on the same I am assuming it is not exempted u/s 10(10D). As per sec 194DA TDS on the maturity of policy will be deducted @ 1% if the matured amount is more than Rs. 1,00,000 and the same is not covered u/s exemption u/s 10(10D).
2. In the above case make sure it is an insurance policy. If it is an insurance policy the matured amount will be taxable under the head Income from Other Sources.
Please correct me if the above solution has an alternative view.

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