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What is procedure for LIC after maturity?
The proceeds will be paid automatically to the policyholder’s account once the maturity period is over. However, if the settlement amount is over Rs. 60,000, it is mandatory to file the discharge form along with the required documents.
Is revenue stamp required for LIC maturity form?
Maturity Form LIC : Use this form for taking Maturity proceeds from LIC Policy. Affix Rs. 1 Revenue Stamp at bottom and cross sign on revenue stamp at page 1. One sign on page 2 at the bottom.
Is LIC maturity amount an income?
Therefore, the insurance maturity proceeds are taxable, and not entitled to exemption under section 10(10D) of the Income Tax Act. Sandesh surrendered the policy on maturity on 16 September 2019. Since the maturity payment is above Rs 1 lakh, the insurance company is liable to deduct tax on the maturity proceeds.
Does LIC pay maturity amount on time?
On receipt of these documents payment is processed in advance so that maturity amount gets credited to the policyholder’s bank A/C on the due date.
How can I write LIC for maturity claim?
Sir/Madam, Respectfully, I _________ (Your Name) took an insurance policy from your insurance company on _______(Date of Insurance Policy Taken) and policy number is __________ (Policy Number) which got matured on _______(Policy Maturity Date).
Is LIC maturity exempt?
No exemption from income tax on the maturity of policies 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\% or 20\% of the sum assured as the case may be, is fully taxable.
What is due at maturity?
In finance, maturity or maturity date is the date on which the final payment is due on a loan or other financial instrument, such as a bond or term deposit, at which point the principal (and all remaining interest) is due to be paid. It is similar in meaning to “redemption date”.
How is maturity amount calculated?
Maturity value is the amount to be received on the due date or on the maturity of instrument/security that investor is holding over its period of time and it is calculated by multiplying the principal amount to the compounding interest which is further calculated by one plus rate of interest to the power which is time …
Is LIC maturity amount tax free?
When the premium paid on the policy does not exceed 10\% of the sum assured for policies issued after 1 April 2012 and 20\% of sum assured for policies issued before 1 April 2012– any amount received on maturity of a life insurance policy or amount received as bonus is fully exempt from Income Tax under Section 10(10D).