1. Amount received after 5 years from a LIC Money back policy
2. Amount received from PF Withdrawl
3. Gratuity Amount received from an employer
sanjeevguptacp@ail.com
LIC Payments
The amount received from Insurance companies are
- (a) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA; or
- (b) any sum received under a Keyman insurance policy; or
- (c) any sum received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured
PF withdrawl
It is totally tax free.
Gratuity
Gratuity received may or may not be tax free . The details of tax scheme of gratuity is given below :
2.Employees Covered Under Gratuity Act Least of following
i. Actual Gratuity received.
ii.Rs 3,50,000;
iii.15 days salary for each
completed year or part thereof
exceeding six months
3.Any other Employees i. Actual Gratuity received.
ii.Rs 3,50,000;
iii.Half months average salary of
each completed year or part thereof
Sal
About taxworry
Hi, I had an LIC endowment policy. I had been paying the premium for the past 8 years. This year, I have surrenderred the policy, and LIC has paid me the surrender value.
What are the tax implications of this? Should it be add to my income as ‘Income from other sources’? Please advise.