Is death benefit taxable in India?

Is death benefit taxable in India?

As per section 80C of the Indian income tax act, an insured is eligible for the tax exemption on the payout received at the end of the term period. According to this, the death benefit in case of accidental death, the maturity amount should be fully exempted without imposing any tax on the amount.

Is money received as nominee taxable?

Principal amount received by you as nominee is not taxable. Income received by way of will or inheritance is not taxable. However interest earned from the date of demise of your mother’s sister till the maturity will be taxable as Interest income. You will show this principal amount under exempt income.

Who is regarded as Government employee for the purpose of Income Tax Act?

further u/s 21(b) of Indian penal code defines Govt employee as” employee of Govt company is govt employee.” Can we take this as concrete base during the assessment proceedings.? A corporation formed under an Act is not Government. It is a body corporate.

Is TDS deducted on bonus paid to employee?

When the employer declares a bonus, the bonus is added to your salary. Based on the employer’s calculation of your tax liability, the TDS is deducted from your salary. As such, the rate of TDS deduction increases after bonus declarations because the employer also factors in bonus income in your salary.

Are death benefits tax-free?

Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren’t includable in gross income and you don’t have to report them. However, any interest you receive is taxable and you should report it as interest received.

Is life insurance money tax free?

How much tax do you pay on a government employee pension?

Uncommuted pension or any periodical payment of pension is fully taxable as salary. In the above case, Rs 9,000 received by you is fully taxable. Rs 10,000, starting at the age of 70 years, are fully taxable as well. Commuted or lump sum pension received may be exempt in some instances.