TDS on LIC Maturity Amount
MY LIC Agent told me that on maturity of a LIC policy, TDS would be deducted and balance will be settled. On What amount TDS is deducted? What is the rate of TDS? Under what section TDS is deducted?
LIC Maturity amount consists of two portion
1. Interest portion
2. Sum Assured portion
Sum assured portion is exempt whereas Interest portion is taxable and hence TDS is levied.