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Section 194da

GAJENDRA RANGOONWALA (PROPRIETOR) (57 Points)

08 July 2016

My client has received maturity proceeds of SBI Life Insurance policy amounting to Rs.440250 after deduction of TDS at 2% u/s 194DA whether full maturity proceeds is taxable or only bonus portion??if yes under which head it is taxable ?

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2 Replies

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 08 July 2016

Hi Gajendra,

Only bonus portion is taxable and also the section 194DA has been inserted to tax any sum received on account of insurance policy including bonus other the sum mentioned in sec 10(10D).

The same shall be taxed under incom from other sources.

Howver if the aggregate amount in the financial year does not exceed 100000, then no deduction is required.

So please confirm thart is your total amount less than 100000 if yes then wrong deduction has been made in your case.