Income tax payable at maturity of 10 years JEEVAN ASTHA policy of LIC of India

Forums Exemptions Income tax payable at maturity of 10 years JEEVAN ASTHA policy of LIC of India

Income tax payable at maturity of 10 years JEEVAN ASTHA policy of LIC of India

I had purchased a JEEVEN ASTHA policy with 10 years maturity. Now it is due for payment in Dec. 2018. I would like to know if the gains on maturity are taxable or exempt. If is taxable will it be taxed as Long term gain or a part of reular income>

Profile photo of drgurmohan15@gmail.com-61850403 Asked By: drgurmohan15@gmail.com-61850403 2 replies 2 helpful answers Last Updated: 1 month ago
  • I had purchased a JEEVEN ASTHA policy with 10 years maturity. Now it is due for payment in Dec. 2018. I would like to know if the gains on maturity are taxable or exempt. If is taxable will it be taxed as Long term gain or a part of reular income>

  • Profile photo of KOMAL MISTRYKOMAL MISTRY
    Moderator

    Exemption under section 10(10D) on Maturity amount received –When the premium paid on the policy does not exceed 10% of the sum assured – any amount received on maturity of a life insurance policy or amount received as bonus is fully exempt from Income Tax.

    Taxation where the premium paid is more than 10% of the sum assured – Any money received from a life insurance policy, where the premium is more than 10% of the sum assured is fully taxable. This income is added under the head ‘income from other sources’ and taxed at slab rates applicable to you.

  • Since the policy was purchased in 2008, the premium should not be more than 20% of sum assured.

You must be signed in to reply to this question.