RESPECTED SIR,
AS I INVESTED RS.ONE LAC DURING MAY 2011 STATED ABOVE. HOW MUCH REPURCHASED AMOUNT IS INCOME TAX EXEMPTION. AS IN CASE OF BANK FDR ONLY INTEREST IS TAKEN INTO TOTAL INCOME. HERE IN LIC SAMARIDHI PLUS IS UNIT BASE POLICY, DURING THE YEAR 2018 I REPURCHASED MY UNITS OF LIC SAMARIDHI PLUS. THERE MUST BE EXEMPTION OF INCOME FROM INCOME TAX & I RETAINED THE POLICY MORE THAN 7 YEARS. LIC DEDUCTED ONLY 1% TDS ON FULL AMOUNT, OTHERWISE LIC MUST DEDUCT 10% TDS FROM GAIN ON UNITS VALUE.
Respected Sreekanth ji,
I prefer your good self more than a well qualified C.A.i.e about your knowledge etc. As I have stated that I purchased Lic Samridhi Plus on May 2011, here sum insured is Rs.1 lac 25 thousand on single premium i.e policy period 10 years. For policies purchased between 1st April 2003 & 31st March 2012, the insurance premium you pay in a year should be less than or equal to 20% of the Sum Assured in the plan. If this condition is not met, the entire maturity proceeds will be taxable income in the year that the policy matures. Here my split up premium year wise should be Rs.12500/-per annum.for sum insured but I purchased before 1st April 2012 then condition of 20% applies upto Rs.20,000/- premium P.A. apply.,but due to single premium there must be discount/rebate on policy .Actually my premium RS 10000/- if we divide by 1/10 ,my annual premium RS.12,500/- are eligible for sum assured , but as I purchased on May 2011, then 20% condition apply . Then Less than Rs.20000/- premium paid is applicable to my policy, but as per sum assured my annual premium becomes Rs.12,500/-.
So as per this formula whole income becomes tax exempted In future it shall be in future quarry also by splitting the single premium in to month wise by dividing the period with sum assured.
Sir,
The answer to your query lies in your 2nd statement above.
“As I have stated that I purchased Lic Samridhi Plus on May 2011, here sum insured is Rs.1 lac 25 thousand on single premium i.e policy period 10 years”
Since its a single premium policy, so you need to pay tax on the entire maturity proceedings.
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AS PER YOUR REPLY FULL AMOUNT IS TAKEN IN TO CONSIDERATION WHILE FILING ITR ,BUT QUESTION IS THAT THERE IS NO EXEMPTION FROM INCOME TAX ON MATURITY AMOUNT.AS INITIALLY I INVESTED Rs.ONE LAC ON LIC SAMRIDHI PLUS, AT THE TIME OF INVESTMENT I DID NOT CLAIMED ITR REBATE U/C 80-C i.e. 2011-12 ,JUST FOR LONG TERM INVESTMENT,
KINDLY ADVISE ME FROM EXEMPTION UNDER INCOME TAX ANY MATURITY AMOUNT & UNDER WHICH ACT OF INCOME TAX. I AM VERY OLD YOUR SUBSCRIBER ,I HOPE YOU MUST GUIDE ME PROPERLY BECAUSE THIS YEAR i.e .2018-19 I WAS RETIRED FROM THE SERVICE FROM FOOD CORPORATION OF INDIA, & FILLING ITR UNDER YOUR PROPER GUIDANCE & B.COM.PASS DURING YEAR 1977-78, NOW LITTLE KNOWLEDGE OF INCOME TAX.