Income From Lic Annuity

As you retired from a psu other than lic of india and that annuity comes from lic of india your annuity should be reported under income from other sources not income from salary in your annual income tax return.

Income from lic annuity. Sharma of kotak says insurance can be bought with. Option a to j available under lic s jeevan shanti plan no. Pension and annuity income accessed april 3 2020. Mint income tax rules for annuity received from lic.

Section 10 10d exempts any sum received from a life insurance policy subject to certain conditions. There are 7 options for single life coverage and 3 options for joint life coverage. Reproducing section 10 10d any sum received under a life insurance policy including the sum allocated by way of bonus on such policy other th. Annuity payable for life at a uniform rate.

28 march 2009 section 80ccc provides that the pension received from such annuity plan under superannuation scheme of lic or any other insurer will be taxable. There is no express deduction available against such income and the deposit for such scheme was already availed of. I am 65 and retired. Life insurance and annuities allow individuals to invest on a tax deferred basis but how they pay policyholders is very different.

A life insurance plan may not be useful for those in this age group. All the immediate annuity options i e. Immediate annuity plans cater to retired people who want guaranteed income. 6 10 annuity options to choose for a pension income.

My gross annual income for fy 2018 19 is slightly below rs 6 65 lakh. Lic offers seven annuity options under jeevan akshay vi product. 512n328v02 have been withdrawn with effect from 25 08 2020. Option b c d and f would provide a fixed period of annuity income for 5 years 10 years 15 years and 20 years respectively.

Any periodic payment received as pension on an annuity purchased by you directly becomes taxable under the head income from other sources. The said amount shall be taxable under the head income from other sources being the residual head under the i t act. Annuity payable for 5 10 15 or 20 years certain and thereafter as long as the annuitant is alive. Lic jeevan akshay vii comes with 10 different annuity options.