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Budget 2019 tweaks taxes on insurance maturity proceeds

Receipts from life insurance policies are taxable if the premium paid exceeds 10% of the sum assured. TDS of 1% is deducted by the insurance company on payment where the maturity proceeds are taxable and the amount exceeds Rs 1 lakh. The government in Budget 2019 has amended TDS rules on receipts from life insurance policies. The TDS rate shall be 5% on the ‘income’ portion and not on the entire amount. The income portion will be the maturity proceeds less the total premiums paid. Receipts from LIC policy paid on the death of a subscriber remain exempt from tax.

Read More at Moneycontrol News date : 2 Aug 2019, Friday

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