Questions Exempt LIC moneyback u/s 10(10 D)

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Manish Matta

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December 26, 2020 2:48 pm

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Exempt LIC moneyback u/s 10(10 D)

Hello Dear Sir,

Whether insurance claim received by son on the death of his father is taxable if premium paid is more than 10% of the sum assured......pls guide..?

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hanif

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September 5, 2019 3:13 pm

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Exempt LIC moneyback u/s 10(10 D)

Hello Amlan, I have a query,as you are aware there are some changes from September 1st, 2019 including insurance policy also.i have 2 LIC policies of Rs 50000 and Rs 1 lac respectively opened in 1991 (both) for 31 and 35 years resp. I am paying premium yearly for one policy is rs 1550/- and other po...

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Amlan Dutta

The proposed changes are only for taxable proceeds. Hence, first check whether your policy proceeds are taxable or exempt u/s 10(10 D)
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The proposed changes are only for taxable proceeds. Hence, first check whether your policy proceeds are taxable or exempt u/s 10(10 D)
Here, since insurance policies taken before 2012 For this, first, compute whether the premium that you pay exceed 20 % of the sum assured(since policy taken before 2012 ). Only in the case where they do , the maturity proceeds become taxable and shall not be exempt under 10 (10D) ...
1.) For first policy, sum assured 50,000 and so 20 % of 50,000 = 0.2 x 50000 = 10000 rs and premium paid is 1550, so premium paid does not exceed 20 % of sum assured ,so maturity proceeds won't be taxable

2.) Likewise for second policy, sum assured is 1 lakh, 20 % would be 20,000 and premium paid is 2700 which is much below 20 %, so again maturity proceeds won't be taxable

In your case , there won't be any TDS since proceeds are exempt ...Just so that you know , in the Budget 2019, it has been proposed that from September 1, 2019, only on taxable proceeds , 5 per cent TDS on non exempt portion of life insurance pay-out will be charged on net basis (i.e. total maturity amount – total premium paid), instead of deducting 1% tax from entire maturity amount under section 194 IA . TDS shall be deducted only if maturity exceeds one lakh rupees.

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December 8, 2019

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Amlan Dutta

The proposed changes are only for taxable proceeds. Hence, first check whether your policy proceeds are taxable or exempt u/s 10(10 D)
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December 8, 2019

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Sanchi Rajput

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July 11, 2019 1:00 pm

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Exempt LIC moneyback u/s 10(10 D)

Hi Sir,
My father had a money back policy which got matured. 1% tds is deducted.
maturity amount is 2.36 Lacs and the premium he paid was around 60,000 for 5 years. Does he need to show the whole maturity amount received in income from other sources or it can be exempted under section 10(10D). If it ...

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Amlan Dutta

Check this link also ...http://www.simpletaxindia.net/2019/04/income-tax-on-maturity-receipt-of-life-insurance-policy-tds-194da.html

INCOME TAX ON MATURITY AMOUNT OF LIFE INSURANCE POLICY

There is a lot of confusion among the Taxpayers and tax professionals regarding taxability of the Maturity amount received from Life insur...

July 12, 2019

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Sanchi Rajput

Thank you for the information.

July 12, 2019

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Krishna Kumar

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June 3, 2018 6:26 pm

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Exempt LIC moneyback u/s 10(10 D)

I have a money back insurance policy from LIC in which i get Rs 25000/- in every four years. In Mar 2018, i received Rs 25000 from LIC. My policy maturing on 2023. I am Govt employee in 20% tax slab and filed ITR 1 previous year. Now, question arises , is this Rs 25000 is taxable OR if it is e...

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Amlan Dutta

If policy taken after 1st April 2012 and premium doesn't exceed 10% of sum assured , then the money back received shall be exempt under 10(10D ) ...

Say , if sum assured is 100 Rs ( just giving example), then the annual premium for a policy taken after 1st April 2012 must not exceed 10 Rs

Declare su...

If policy taken after 1st April 2012 and premium doesn't exceed 10% of sum assured , then the money back received shall be exempt under 10(10D ) ...<br /><br />Say , if sum assured is 100 Rs ( just giving example), then the annual premium for a policy taken after 1st April 2012 must not exceed 10 Rs <br /><br />Declare such income in exempt income reporting section under section 10(10 D ) .......<br /><br /><br /><br />( if policy take before 1st April 2012 , then the premium must not exceed 20 % of the sum assured)...if the premium exceed the percentages mentioned above , the whole of the amount is taxable and to be offered as income under other sources!<br /><br /><br />Youtube link - https://www.youtube.com/watch?v=P1ANfXsSCeg

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June 3, 2018

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