Exemption sec.10 Life insurance

Direct Taxation

On death recieved - always exempted Received on maturity - exempted but subject to the exceptions (20%,10%, or 15%) But if policy holder surrender the policy and receive money then what is the taxability of such money ? It is fully taxable ? Or Exempted subject to the exceptions (20%,10% 0r 15%) ??

Chandan Subudhi

CA Final

★ 12K+

19-Sep-21 07:34

687

Answers (1)

The surrender value that is received will not be tax-free under Section 10 (10D), and the amount will be treated as 'income from other sources'

CA Suraj Lakhotia

Admin

19-Sep-21 08:26