I PAID AMOUNT OF RS. 140000/- P.A. AGAINST SUM ASSURED OF RS. 500000/- FOR THE PERIOD OF 5 YEARS. NOW I GET BACK RS. 500000/- ALONG WITH BONUS OF RS. 91500/- AND TDS WAS MADE OF RS. 11830/-. NOW WHAT SUM IS TAXABLE IN MY HANDS.
5,91,500 is taxable and lic premium paid is not allowed as deduction
there is no clarification about lic premium paid is allowed as expenses or not?
Jejeram Ghule Pune
The amount of premium paid on a single premium endowment plan exceeds of 10%
of sum assured is required to deduct TDS.hence the total sum received =591500 is required to deduct TDS @1% w.e.f.1st june 2016
k k sarawagi Hyderabad
The amount of premium paid in a single year exceeds 20% / 10% of the policy amount depending on the month and year in which policy has been taken. Hence, the sum received by you is not exempt u/s 10(10D) of the Income-tax Act, and tax has been deducted @ 2% on the entire sum. Rate of TDS has been reduced to 1% w.e.f. 1st June 2016.