Death claim benefit+life insurance
arvind
(Querist) 20 December 2014
This query is : Resolved
i have recieved death benefit of my brother's life insurance as he passed away about 8 month ago. so i want to know that should i have to pay some type of tax like income tax over that amount or i can use directly it without showing any acoount statement to income tax department.
how should i handle income tax department??
Rajendra K Goyal
(Expert) 21 December 2014
Agree, it is not income in the hand of beneficiary.
Isaac Gabriel
(Expert) 21 December 2014
If you are an assesse,consult an auditor as to how exhibit it in accounts.
Kumar Doab
(Expert) 21 December 2014
The letter issued by LIC along with the payment should be carefully preserved.
Your Income Tax Lawyer/CA can help you.
Agreed that it is not taxable.
arvind
(Querist) 21 December 2014
but amount is more than fifty thousand so bank official asking for PAN card no. to deposit check into my account so what is the role of pan no. .
i think this will be case like "this much of amount has been deposited into this account on this perticular PAN no." i think this is the way to inform income tax department.
so should i deposit The letter issued by LIC along with the payment into their office or they will query themselves for how i got this money.
Kumar Doab
(Expert) 21 December 2014
Pan Card number is part of KYC docs required to open/maintain an an a/c in bank....
Yes you can submit letter to BM under proper acknowledgment and attach the copy of letter issued by LIC.
The beneficiary shall have to include interest on this amount earned from bank a/c, in his/her income..............
In case of any inquiry the beneficiary can always cite the letter issued by LIC.....
For more approach your Income Tax lawyer/CA...
Sailesh Kumar Shah
(Expert) 21 December 2014
nothing to worry. you have nothing to pay any income tax. provide pan no. to the bank.
T. Kalaiselvan, Advocate
(Expert) 25 December 2014
LIC claim amount is not taxable hence need not worry about the IT issues. Since it is a cheque, you do not have o worry about the source of income too.
