ALOK CHATTERJEE (DGM) 29 August 2014

Tax on lic jeevan suraksha

Dear Sir

I had made a LIC JEEVAN SURAKSHA policy in Oct 2001 with an annual premium of Rs. 9931.00 which was to be paid upto Oct 2013. Maturity was in Nov 2014. However I surrendered the policy in Aug 2014 and got Rs. 231200.00 as the redeemed amount.

Please let me know how much amount is taxable. Also please let me know whether I should fill the IT return against "OTHER INCOME". I fall in the range of 30% tax deduction. Whether 30% tax will be deducted from this taxable income, or there will be some discount.

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2 Replies

Kumar Doab (FIN) 29 August 2014

If you had claimed income tax relief under section 80CCC, whole surrender value will be added to your taxable income and will be taxed as per your slab rates.

If you did not claim deduction, then only bonus or interest shall be added to your total income as income from other source and income tax will be applicable.

Refer: Section 80CCC of IT Act

and consult your IT lawyer/CA in person.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 08 September 2014

The income of the fund maintained under this pension scheme is totally exempt from income tax being a fund maintained under section 10(23 AAB) of the Act.
3. The deduction under Section 80CCC is available up to a sum of Rs.10,000/- to the assessee, who is an individual in respect of any sum deposited by him into the above plan.
4. The deduction under Section 80 CCC is not available to a Hindu Undivided family.