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POSTED BY ON March 8, 2012 9:00 am COMMENTS (5)
Hi all,
I do have two policies with LIC. Table nos are 108 (SA 1,00,000) and 179 (5,00,000). I got some Rs 70k from these two policies after 4 years. Do I need to show this as income? Is this amount taxable? Are these amounts are under TDS? Please clarify.
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Dear Sri Ramkrishna, a small correction in dear Manish’s reply, as both the policies were traditional plan, the minimum holding period to be eligible for zero tax surrender is 5Y.
Thanks
Ashal
Thank you Ashal, I should give some more details. 108 Table Moneyback policy commenced in 2004. I got Rs 20K each in 2008 and 2012 i.e., for every four years. Thats only as per policy. For four years the premium I have paid is Rs.30K but I got only 20K. I do get bonus after the end of the total term. So in this scenario, I am not getting any extra than I have paid. I am losing 10k in four years for insurance cover etc., actually. So how can I calculate the “income” from this. If everything is tax exempted then no issue. Please clarify.
Dear Sri Ramkrishna, as the 108 policy was originally purchased in 2004, hence the money back received in 2008 & 2012 as well as surrender amount received in 2012, all are tax free.
Thanks
Ashal
Dear Sri Ramkrishna, just to add in my prev. reply –
Money back amount received by you are tax free under section 10 (10) (d) as these are received by you as survival benefit from a life insurance policies.
In case of surrender amount, again you have completed the 5Y holding period, starting since 2004, hence this is also tax free.
Thanks
Ashal
No , the money you get from LIC policies are not taxable , in between and even on maturity .
Manish