TDS on life insurance proceeds - Where to show such income


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Bhushan Deore - I took a policy(single premium) from life insurance company and premium is 100000 in year 2010 and Term is 8 Years, they have deducted 1% tax of maturity amount, that amount is shown in 26as. total maturity amount is 138160. i have just gain 38160 after 8 Years of Period. 


what exact income to show in ITR ? 
Where to show the amount in ITR1 ? please help 
i have salaried Person having annual income is 5.5 Lack.


Deepak - sir maine ak lic policy li thi jiski maturity payment 26 as me show ho ri hai or tds bhi deduct hua hai us income kahan show krna pdega


If you see carefully then that TDS deduction on life insurance proceeds must be under 194DA at the rate of 1 percent .....That means your LIC policy proceeds is not exempt under 10 (10 D) and is rather taxable ...you will show this income under income from other sources ......... Before the introduction of TDS section 194DA, any income received from the insurance policy at the time of maturity was tax-free in the hands of insurer. The new section states that TDS will be deducted by the insurance companies on the maturity of the Life Insurance Policy not compliant with section 10 (10 D) .here i feel that your annual premium for policy ( taken after April 2012 ) must have exceeded 10 % of your sum assured and this then makes it ineligible for exemption under 10(10DA) ............just so that you know, what qualifies for eligibility under 10 (10 D) 

Exemptions u/s 10 [10(D)]
As per sec 10 [10(D)] of the income tax act any income received from the insurance policy is exempted whether received from Indian or a Foreign Company. However, this section has following exceptions to it:

(i)Any sum received under section 80DD and 80DDA (3).
(ii)Any sum received under a Keyman Insurance Policy.
(iii)If Policy is bought after 1st April 2003 but before 31st April 2012: the premium paid is 20% more than the sum insured.
(iv)If Policy is bought after 1st April 2012: the premium paid is 10% more than the sum insured.
(v)Life insurance policy bought for disabled or those suffering from ailments in section 80DDB after 1st April 2013 if premiums are more than 15% of sum assured.



There is no maximum limit for claiming the exemption under Sec 10 [10(D)] unless the above-mentioned conditions are not fulfilled. Also, the above exceptions are not applicable on death claims or any amount received on the death of the insure