“Maturity and bonus amount for insurance is exempt under Sec 10 (10D). However, when the premium paid on the policy does not exceed 10% of the sum assured for policies issued after 1 April 2012 and 20% of sum assured for policies issued before 1 April 2012- it is taxable fully as per the person’s tax slab,” said Jain.
Is the maturity amount on LIC taxable?
The premium of Rs 45,000 exceeds 10% of the sum assured. Therefore, the insurance maturity proceeds are taxable, and not entitled to exemption under section 10(10D) of the Income Tax Act. … Since the maturity payment is above Rs 1 lakh, the insurance company is liable to deduct tax on the maturity proceeds.
What is the maturity amount of LIC Jeevan Shree?
The maturity benefit of the policy includes the Sum Assured + Guaranteed Additions at the rate of 75 per 1000 Sum Assured + Loyalty Additions. As per the latest bonus rates declared by LIC of India Loyalty additions for the 25 Year term are Rs 1100 per 1000 Sum Assured. Guaranteed Additions per year shall be 37500.
Is LIC premium taxable?
2. Tax exemption offered under section 80CCC on life insurance policies from LIC: … If the premium paid in a financial year exceeds 20% of the actual capital sum assured, then tax benefit will be applicable only for the premium up to 20% of the sum assured.
Where is LIC maturity amount in ITR?
“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.”
Which LIC policy is best for tax benefit?
LIC Jeevan Umang. As one of the LIC best plans, LIC Jeeva Umang is a participating, non-linked, individual whole-life insurance plan which offers the combined benefit of income and protection to the family.
How is maturity benefit calculated?
Maturity benefit is calculated as the [Sum Assured + Bonus Amounts] which have been accumulated throughout the policy term + any [Final Addition Bonus] if declared. However if the policy holder does not survive the policy tenure, the nominee will additionally get the Sum Assured amount as the Death Benefit.
What is TDS full name?
Tax Deducted at Source (TDS)
How can I check my LIC premium without tax?
LIC premium without GST can be calculated at LIC India website.
- Your earlier Premium receipt have Actual Premium + Tax separately.
- If Your Policy is in First Year, then Premium + 4.5% GST.
- If your Policy is more than a Year then Premium +2.25% GST.
- Finally, Visit your nearest LIC office or Agent, he may help you.
Is LIC investment tax free?
All tax exemption for payment of LIC premiums are offered as per section 80C of the Income Tax Act, 1961. Tax benefits on Life Insurance policies from LIC (under section 80C) : Let us look into the tax benefits that are received by customers under section 80C if they purchase a life insurance policy from LIC.