Sbi life insurance - setubandhan-policy proceeds are held back due to non-submission of trc
adwin
(Querist) 13 June 2015
This query is : Resolved
Dear Sir,This is adwin Anil Saldanha from Kuwait with regards. Sir, i had made a Setudbandhan Policy 10 years ago i.e, on 26th May 2005, and it got matured on 26 May 2015. Unfortunately it was not credited on 26 or 27th May 2015. I was waiting till 9th June 2015 for it to get credited. Then on inquiry I was told that i need to submit TRC certificate. Sir, as we do not have to pay tax we cannot get it from here. It is only for the companies here and I am working here at the capacity of an individual. Sir, I spoke to Bangalore office too, they are not listening and asking me to produce it. If I cannot get it from here, how can I produce it. Sir, over that I am told that they are going to deduct 30.9% on the invested amount of 3 lacs (10 years ago) + 30.9% on 1.5 lakhs which is added to it. So altogether 30.9% on 4.5 lakhs. Sir, I am totally confused. I have never heard of tax on the invested amount. Sir, the funds at the establishment of this Traditional policy of Setubandhan amount was transferred from my NRE account. It has no link with resident accounts at all.
Sir, please help me to come out of this mess.
Waiting to hear from you,
Yours,
Adwin
Sudhir Kumar, Advocate
(Expert) 13 June 2015
Sir, I am totally confused. I have never heard of tax on the invested amount. Sir, the funds at the establishment of this Traditional policy of Setubandhan amount was transferred from my NRE account.
SO DO YOU THINK THAT THIS TAX DOE SNOT EXIST.
adwin
(Querist) 13 June 2015
Dear Sudhir Sir,
Adwin here,
I am not saying that I have not heard about the tax. I am saying that i have never heard of tax on the invested amount. Rs. 3 lakh was invested in 2005 May. It got matured on 26 May 2015. If they are talking about 30.9% on 1.5 lakh which has accumulated as bonus or interest it is ok but what is not ok is tax on 3 lakh invested.
Hope you are catching my point.
Kumar Doab
(Expert) 13 June 2015
IN the TRC format status (Individual/Company ) can be classified.
It is felt that state of Kuwait did not issue TRC to Individuals.
The MOF might be issuing it now.
Instead of talking you may submit written representations, and demand written reply.
Your CA and other communities like:
http://www.indiansinkuwait.com
or Tax Managers
can help you further.
adwin
(Querist) 13 June 2015
Dear Kumar Doab Sir,
Adwin here with regards.
I already did what you have told me to do. Already i have put this matter for suggestion in www.indiansinkuwait.com. I got one reply which was not satisfactory and then nothing. I spoke to my C.A too. He is not aware of what type of policy it is and can he claim it back for me or no. He said he needs time. Sir, my simple question is can they tax my principal amount of 3 lacs. It is not justified by any means. If they tax the Indian money of 1.5 lacs that makes a sense in case i fail to submit TRC to them. But by no means it looks right to me that they are going to tax my principal which is purely nri money. I want clarification with regard to this. hope to get the answer for this particular part of query.
Thank you Sir,
Kumar Doab
(Expert) 13 June 2015
The maturity proceeds of traditional life insurance policy are completely tax free IT Sec;10(10D).
Since TRC has been notified MOF should be able to help you.
The tax Managers of say KMPG can help you.
http://www.kpmg.com/KW/en/services/Tax/Documents/Tax%20Residency%20Certificate%20-%20February%202013.pdf
adwin
(Querist) 14 June 2015
Dear Doab Sir,
Thanks for your kind reply. I will follow up the Matter of TRC with KPMG. Madam Nidhi Kochar, Manager, NRI dept of BBK Kuwait has told me that she will guide me with the process of obtaining TRC.
Sir, I still have a doubt, about one thing, is SBI Life is right in saying that they will deduct 30.9% of the total i.e., 4.5 lakhs towards tax in case i do not provide them with TRC or it should be only on 1.5 lakhs the amount they are giving to me as a top up on my 3 lakhs after 10 years. Sir, can you please help me to get the documentary support for the same so that i can forward it to SBI Life. waiting to hear from you Sir. Thank you Sir, once again. yours, Adwin
adwin
(Querist) 17 June 2015
Dear Doab Sir,
Adwin here with regards.
Sir, as per your suggestion i spoke to KPMG in Kuwait but they have stopped giving service to individuals due to high service cost.
Meanwhile i got a reply from SBI Life Insurance which is really difficult to understand. I do not know why are they making their own rules.
They are sticking to the point of deducting 30.9% from 4.5 lakhs though 3 lakh is my invested amount.
Dear Sir,
Adwin with Regards.
Sir, this is in continuation with what i received from SBI life Insurance Bangalore Office. Sir, they are again talking of deducting 30.9% on the total amount payable to me. Sir, in this 4,50,000 rupees, 3,00,000 is my amount which i had invested on 26th of May 2005. How can SBI life deduct 30.9% of the amount invested. I really do not understand.
Hoping to hear from you soon.
The Mail that i received by Bangalore office today i.e., on 17th May 2015.
SBIL.0475@sbi-life.com
Sir
Please find below the required details:
Net payable before TDS – Rs. 4,50,000/-
Less- TDS @30.9% - Rs. 1,39,050/-
Net Payable after TDS – Rs. 3,10,950/-
Please feel free to contact the undersigned in case of any queries.
Thanks & Regards,
Sonam Vohra
Dy Manager-Operations
Tel : +91 80 25944981 / 84
SBI Life Insurance Co.Ltd
No 23, 2nd Floor, Yamuna Complex,
7th Cross, Malleshwaram, Bangalore 560003
Sir, how to settle the matter. Please help me out.
yours,
Adwin
