Held, that while introducing the Finance (No. 2) Bill, 2019 the Legislature took note of concerns expressed that deducting tax under section\u00a0194DA\u00a0of the Act on the gross amount under a life insurance policy, which is not exempt under section\u00a010(10D), created difficulties to an assessee who otherwise had to pay tax on the net income, (i. e., after deducting the insurance premium paid from the total sum received) and observed that it was preferable to deduct tax on the net income so that the income as per the return of the deductor of tax deducted at source could be matched automatically with the return of income filed by the assessee. From this observation and taking note of the fact that the assessee had neither availed of any deduction under section\u00a080C\u00a0of the Act in respect of the premium paid to SBI nor claimed any deduction under section\u00a010(10D)\u00a0of the Act and had offered Rs. 3,09,000 to tax in his return, no addition was warranted. Only the net amount that is Rs.3,09,000 should have been taxed, which the assessee had already offered to tax in his return. The addition of Rs. 10 lakhs was to be deleted. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 10(10D) : Life insurance policy-Keyman insurance policy-Single premium paid-Neither claimed deduction of premium paid nor under section 10(10D)-Offering the receipt to tax after deducting the premium paid-Held to be proper Entire sum received as maturity benefit cannot be taxed. [S. 80C, 194DA] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29547","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7Gz","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=29547"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29547\/revisions"}],"predecessor-version":[{"id":29548,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29547\/revisions\/29548"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=29547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=29547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=29547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}