Dear Sir / Madam, I have the above policy the details of which are as given below. As I contradictory opinion from different people on the various option at the time of vesting, I am confused and need your advice / position in simple laymans language. Policy Name - Life Stage Pension Commencement Date - December 2009 Maturity Date - December 2019 Life Cover - Nil Sum Assured/ Death Benefit - Nil Plan - Unit Linked Policy Term - 10 Years Premium Term - Though 10 years can be discontinued after 3 years Tax Benefit - Sec 80 CCC, 10(10 A) I.Tax Act Pension Option / MV - 1/3, 2, 3 or Full Maturity Value Kindly advice me on exact position of declaration of the maturity proceeds for tax purposes* and oblige. Chandran
Can TDS paid on behalf of the builder - Form 26QB be claimed though we are the deductor ?
HI,
As per section 10(10 A iii), any payment in commutation of pension received from a fund is not taxable.Hence if you choose for full maturity complete payout option in December 2019, this transaction may not be subjected to tax.
On your second query, the credit of the TDS can be claimed only by the person whose TDS has been deducted. It belongs to deductee not the deductor. The taxes paid will be reflected on the PAN of that person. Hence, he can claim the same in his return.
Thanks
Damini
Dear Sir,
Commutation of pension is exempt u/s 10(10A)(iii) is exempt.
Credit of TDS will be taken by deductee only and not deductor.
Commutation of pension is exempt from tax.
Hi,
This will not be taxable.
To your second question, the deductor cannot claim the taxes deducted. It belongs to the deductee so he can claim.
Hope that clarifies.
Regards,
Nikhil
Dear Sir,
As I am not aware what all other sources of income do you have so not able to comment which ITR form to use?
Hi Chandran
The maturity proceeds for the above policy, if received in lumpsum on maturity, shall be exempt. For any other option selected for receipt of pension, it shall be taxable.
TDS shall be credited to the deductee . It shall be reflected in the 26AS statement. Deductor, in no way, can claim such TDS.
Hi Chandra,
If you opt for commuted/ lump sum option, the same is exempt u/s 10(10A). However, if you opt for monthly pension it will be taxable.
