How to calculate and tax liability on the maturity proceed received from Life Insurance, from which TDS has been deducted.
Also, let me know how to file it in ITR
Payout received form a life insurance policy i.e. sum assured plus any bonus, may or may not be taxable.
According to Section 10(10D) of the Income Tax Act, the payout is taxable if:
So please check your policy issue date and its details. Since TDS was deducted on your payout, it is likely that your policy payout is taxable.
Sachin Shah is a 30 year old Senior Software Engineer, working at an IT services company in Bengaluru. He and his wife want to plan for their retirement and also want to save for their child's education, wedding and for buying a car.View Case Study