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hanif

Category : Taxabili..,

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April 30, 2019 3:29 pm

Sir, i have a query , my colleague did have an insurance policy taken in the year 2009 (january), and it is matured in january 2019. he got a maturity amount of
rs 3,30,756 and the message says that on account of Maturity payout has been credited to your bank account as per the NEFT facility chosen...

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Amlan Dutta

Please don't repeat your questions......As per section 10(10D) in case of a life insurance policy issued after 1.4.2003 but on or before 31.3.2012, if the premium payable in any year is less than 20% of the actual sum assured, then the policy proceeds would be exempt.Assuming that the annual premium was less than 20 % of the sum assured ,it is tax exempt .
For more clarity, Section 10(10D) has to be looked into for taxability of life insurance policy.As per Section 10(10D) of the Income Tax Act, 1961 the amount of sum assured plus any bonus (i.e. the policy proceeds) paid on maturity or surrender of policy or on death of the insured are completely tax free for the receiver subject to certain conditions.

1.) As per section 10(10D) in case of a life insurance policy issued after 1.4.2003 but on or before 31.3.2012 if the premium payable in any year exceeds 20% of the actual sum assured, then the policy proceeds would be taxable in the hands of the insured. .

2.) For policies issued on or after 1.4.2012, the above mentioned limit of 20% has been changed to 10%.

3.)In case the insured suffers from severe disability or disease as specified by the Income Tax Act and rules and his/her policy was issued on or after 1.4.2013, then for them the limit of 10% will be increased to 15%. For this purpose, disability has to be one of those specified in section 80U (like autism, mental retardation) and disease has to be one of those specified in section 80DDB rread with Rule 11DD of income tax rules such as blindness.

In case the premium payable in any year exceeds the prescribed percentage i.e. 10%, 15% or 20% of actual sum assured, as described in the preceding paragraphs, then the whole proceeds from the policy would get taxed in the year of receipt. However, in case of death of the insured, where his nominees receive the policy proceeds the same shall be tax free in the hands of the nominee(s) even if premium paid in any year crossed the prescribed percentage of sum assured

As per section 194DA of the Income Tax Act, 1961, any sum received by an insured Indian resident from an insurer under a life insurance policy shall be subject to TDS @ 2% if the said sum is not exempted under section 10(10D). This means that policy proceeds exempted under section 10(10D) will be given to the insured without TDS (Tax Deduction at Source). Further, even if these proceeds are taxable as per section 10(10D) but do not exceed Rs 100,000, then also no TDS is to be deducted by the ins ..

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Amlan Dutta

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Gajendra Arvind

Category : Taxabili..,

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April 29, 2019 10:59 pm

I am an Indian Resident, salaried employee, holding shares of company (that I am currently working in) listed in US Markets. At the time of selling the shares, what is the taxation rate that is applicable on the capital gains of such listed shares held outside India? Is the duration of the STCG and ...

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Amlan Dutta

You are referring to taxability of employee stock options for foreign stocks . Sale of shares of a foreign company by an Indian Individual who is resident in India during the particular year, amounts to "Transfer" of "Capital Asset" and is taxable as per the provisions of Section 45 of the Income Ta...

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Gajendra Arvind

Hi Amlan, in the above response you had mentioned for Unlisted and Foreign Shares under LTCG 'Gains will be treated as long-term if shares are held for more than 24 months. Tax will be levied @ 20% with indexation benefit and @10% without indexation benefit.' Does indexation benefit apply for shares...

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Amlan Dutta

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Gajendra Arvind

Thank you very much for the detailed response.

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Krushna chaudhari

Category : Who is r..,

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April 29, 2019 7:54 pm

Hi there , I 'm an employee of a private firm. no TDS , PF, and other facility only net pay. 18k PM , and also taken 2 lakhs advance in 2018 from the employer

please suggest which ITR should I file , do I need to show the advance amount in ITR

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Amlan Dutta

18000 per month translates to a annual income of 18000 x 12 = 216000 Rs ...Return filing is mandatory only when the gross total income exceeds threshold level i.e 2.5 lakhs ...In your case since the annual income is below threshold levels, you are not compulsorily required to file return of income.....

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Rahul Nag

Category : How to f..,

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April 29, 2019 3:57 pm

I am Rahul Nag , an individual and was trying to fill ITR1 and the nature of my received payment was 194J.
When I was filling the ITR, it was coming with an error message" no income details or tax computation is provided in ITR but details regarding tax paid is provided.
I am attaching my filled for...

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Amlan Dutta

You may have forgotten to attach images ...anyways, from what i gather, you have missed to fill income schedule ...since you have income from profession so ITR 1 is not for you, you should be filling ITR 3 and filling the schedule for income from profession showing your income ........the error th...

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Rahul Nag

I am still confused.I am attaching the TDS certificate and ITR1 form which I filled..I am not understanding which column should I fill for the source of income as ITR4 has same as ITR1..

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Amlan Dutta

I cannot go over basics here ...you may first like to cement basics watching some of the basic tutorials made by me or others on how to file return......If you see your return sheet, you will see that you have not depicted your income at all ...i mentioned ITR 4 wrongly , you will need to fill ITR ...

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