income tax on lic maturity

[satbir singhwahi]

One time LIc premium Nov 2004 ₹ 575000

Maturity Amount ₹ 970000 received on Jan 2015 TDS ₹ 19500

What is taxable amount.

[Ganeshan Kalyani]

Lic maturity amount should be tax free u/s 10 (10D). Please check with the branch.

[satbir singhwahi]

Since the single premium exceeds 10% of sum assured . The maturity Rs, 970000 will be taxable as tds deducted also.also.

[satbir singhwahi]

Pls guide whether taxable amount will be 970000

or

395000 (970000-575000) i.e maturity amount less premium paid

[satbir singhwahi]

Sir

PLs reply to query

[Ganeshan Kalyani]

In my view entire maturity amount will be the taxable amount for TDS purpose and not the net amount because on the premium amount so paid you have already benefited under section 80C at the time of investment. Hence no dual benefit and total maturity is subject to tax. Thanks.

AI Summary

Life Insurance Maturity Amount Fully Taxable; No Dual Benefit Allowed Under Section 80C for One-Time Premium Payment. An individual inquired about the taxable amount on a life insurance maturity sum received in January 2015, after a one-time premium payment in November 2004. The maturity amount was 970,000, with a TDS of 19,500 deducted. The discussion involved whether the entire maturity amount or just the gain over the premium paid should be taxed. It was concluded that the entire maturity amount is taxable because the premium had already benefited under section 80C, and no dual benefit is allowed.