Does LIC maturity amount is taxable or not?

Therefore, the insurance maturity proceeds are taxable, and not entitled to exemption under section 10(10D) of the Income Tax Act. Sandesh surrendered the policy on maturity on 16 September 2019. Since the maturity payment is above Rs 1 lakh, the insurance company is liable to deduct tax on the maturity proceeds.

Where is LIC maturity amount in ITR?

“According to Section 10(10D) of the Income-Tax Act, any sum received from a life insurance policy is exempt from tax.” Getty Images “This tax-exempt amount needs to be reported in Schedule EI in ITR forms 2, 3 and 4 and in under ‘exempt income’ in ITR Form 1.”

What happens when insurance policy matures?

A maturity benefit is a lump-sum amount the insurance company pays you after the maturity of insurance policy. This essentially means that if your insurance policy is for a term of 15 years, you, the insured, will get a pay-out after these 15 years. In addition, a maturity benefit policy also provides death risk cover.

Is LIC maturity amount taxable Quora?

LIC maturity amount comes under section 10(10D) of income tax Act. All payments from LIC by way of money back, claim settlement or maturity are not taxable.

How can I claim LIC money after maturity?

Maturity Claims: The servicing Branch usually sends maturity claim intimations two months in advance. Please submit your Discharged Receipt in Form No.3825 with original policy document atleast one month before the due date so that the payment is received before the due date of maturity claim.

Can I claim LIC maturity online?

Due to lockdown and policy restrictions, LIC allowed its policyholders to submit maturity claim related documents online. The required documents were required to be scanned and then submitted via email to the servicing branch.

Is LIC policy maturity amount taxable with TDS?

Life Insurance / LIC policy maturity Amount is taxable with TDS or not? This is by and large most asked question to Insurance Funda, especially after the budget 2019. Well, the answer is, Life Insurance policy maturity amount can be exempted from tax if and only if it satisfies certain conditions.

Is maturity benefit of any life insurance policy taxable?

Maturity benefit of any life insurance policy is exempted of income tax as per section 10 (10D) of income tax act 1961. However it is only tax free if your sum assured or life cover is at least 10 times of your annual premium.

Do we pay tax on LIC policy?

We may get the benefit of tax exemption on LIC policies under various sections of the Income Tax Act. However, when we pay premium and at maturity, we may have to pay a certain percentage of service tax. If the sum assured under the LIC policy is more than 10 times the annual premium for the maturity amount, it will be tax-free.

Is life insurance / LIC policy taxable?

Otherwise, the policy will become taxable and TDS (Tax deducted at source) will become applicable to it. Let us discuss the conditions and rules applicable for (deciding the taxability of) life insurance / LIC policy maturity amount in detail so that you need not worry at the time of maturity of the policy.