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Ramalingam

Ramalingam Kalirajan  |9757 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
M Question by M on May 21, 2024Hindi
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Is enhanced survival benefit of LIC Jeevan ASHA 2 Table 131 option 2 tax exempt or taxable on maturity?

Ans: The enhanced survival benefit of LIC Jeevan Asha 2 policy with option 2 is likely taxable on maturity.

Here's why:

Income tax rules in India generally consider money received under a life insurance policy, besides the maturity benefit or death benefit, as taxable income. This includes benefits received for specific situations like critical illness or surgical procedures.

The enhanced survival benefit under option 2 is essentially a lump sum amount withdrawn before the policy matures. It's meant to be used for meeting hospital expenses in case of emergencies.

Therefore, this benefit falls under the category of money received before maturity and is likely taxable.

Recommendation:

It's advisable to consult a tax advisor for specific guidance on your situation. They can consider your tax bracket and other factors to determine the exact tax implications of availing the enhanced survival benefit.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9757 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

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Hello Sir, on 28/09/2003., I have purchased Jeevan Asha - II (Plan-131) with sum assured of Rs. 500000 (five lakh) for Half-Yearly Premium of ? 16,917.00 (annual premium of ? 33834). I had paid all the instalments and policy matured on 28/09/2023. lic paid me maturity amount with deduction of Tax (TDS-194DA) of ? 16,180 on (? 3,23,600 a part of maturity amount) on 8/09/2023. The calculation of maturity amount by LIC was as follows: 1. Basic amount ?400000 2. Bonus ?700000. 3. Any other RCT. ? 251800. 4. Total ? 1351800. 5. Income tax ? 16180 on ? 3,23,600. Paid in my bank account ? 1345620. Sir, Why LIC have deducted TDS? (the annual premium was less than 20% of Sum assured and the policy commenced in September 2003 and there is no tax on maturity on these policies). Sir, how to calculate my tax liability considering me in higher bracket of 30%. Thanking you.
Ans: You're right, there seems to be a misunderstanding regarding the TDS deduction on your Jeevan Asha-II policy maturity amount. Here's a breakdown:

TDS on Maturity: Generally, for pre-2014 ULIPs and traditional endowment plans like Jeevan Asha-II, maturity proceeds are exempt from tax if the annual premium doesn't exceed 20% of the sum assured. In your case, the premium amount seems to be well below the 20% limit.

Possible Reasons for TDS: There could be a few reasons for the TDS deduction:

Technical Error: An error in LIC's system might have triggered the TDS deduction.
Change in Rules: While the rule generally applies to pre-2014 policies, there might have been a specific clarification or change applicable to your policy.
Recommendations:

Contact LIC: Get in touch with LIC's customer care or your agent. Explain the situation and the relevant tax rule. Request clarification on the reason for TDS deduction and explore the possibility of a refund if it was an error.
Tax Return Filing: While filing your Income Tax Return (ITR), you can mention the maturity amount received, the TDS deducted (Rs. 16,180), and the exemption clause applicable to your policy (premiums below 20% of sum assured). This will help you claim the deducted TDS amount if it wasn't justified.
Calculating Your Tax Liability:

Since the maturity amount is likely exempt from tax, you don't need to calculate any additional tax liability on it (assuming you haven't received any taxable bonuses). However, your total income for the year will determine your tax bracket (30% in your case) and the tax applicable to your other income sources.

Remember: For specific advice on your situation and the possibility of an LIC error or rule change, consulting a tax advisor familiar with LIC policies and tax rules for pre-2014 plans might be helpful.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Sir My jee rank was not that good..I have some queries..cna u pls assist me what's the difference between bsc cs and btech cse..and would they lead to same career path and options.. Also if I choose to go with btech then..should I choose srm sonepat or not..I have planned to do msc abroad
Ans: Javin, B.Sc. Computer Science is a three-year, theory-driven program emphasizing algorithms, computation theory and foundational mathematics, suited for research, data analysis or academic roles, whereas B.Tech. in Computer Science & Engineering spans four years with a balanced mix of hardware, software and engineering fundamentals, offering intensive lab work, industry internships, and project-based learning that prepare graduates for system design, software development and emerging technology roles. Both degrees can lead to software engineering, data science, and cybersecurity careers, but B.Tech. holders often access core engineering positions and higher placement rates, while B.Sc. graduates may pivot more readily into research-oriented master’s or academic tracks. Considering SRM University Delhi-NCR Sonepat for B.Tech. CSE, the programme is delivered in a NAAC-accredited institution with over 315 recruiters visiting annually and a 95 percent placement consistency, supported by modern computing labs and structured career services. For planned MSc studies abroad, admissions typically require a four-year engineering or science degree with substantial computer-science content, a competitive GRE score (if required), proof of English proficiency (IELTS/TOEFL) and strong academic references; B.Tech. CSE aligns smoothly with these criteria, ensuring eligibility and facilitating conversion to research-focused master’s programmes.

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Opt for B.Tech. CSE at SRM Sonepat to benefit from industry-aligned curriculum, high placement consistency and robust lab exposure, then pursue an MSc abroad leveraging the recognised four-year engineering degree, structured admissions prerequisites and extensive global opportunities in advanced computing and research. All the BEST for Admission & a Prosperous Future!

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My daughter got PhD in Pharmacology admission both at Lovely Professional University Phagwara & JSS College of Pharmacy Ooty Tamil Nadu. Can you guide us which one is better? Which one to choose & why?
Ans: Lovely Professional University’s doctoral programme in Pharmacology operates within a NAAC-accredited private university that administers its own LPUNEST entrance test and offers substantial scholarship support based on merit . The three-year full-time curriculum encompasses core research methodology, publication ethics and advanced electives, supplemented by interdisciplinary minors and industry-interface modules that facilitate collaborations with pharmaceutical companies. Research scholars benefit from well-equipped pre-clinical and clinical evaluation laboratories, a centralized animal house and access to LPU’s Centre for Biomedical Research. A robust placement pathway connects candidates to roles in drug safety, pharmacovigilance and regulatory affairs, leveraging the university’s corporate partnerships and regular campus recruitment drives. Despite its relative youth, LPU maintains a dedicated Career Development Centre and reports a consistent placement rate for life-sciences graduates through structured internship pipelines and research-fellowship opportunities .

JSS College of Pharmacy, Ooty, established in 1980 and part of JSS Academy of Higher Education & Research, stands among the top five pharmacy institutions nationally, holding NAAC A+ accreditation and a #4 NIRF pharmacy ranking . Its Department of Pharmacology—active since 1988—provides doctoral candidates with specialized training in pharmacology and toxicology tracks, supported by CSIR-, DBT- and AICTE-funded research projects worth over ?3 crore. The college features a CPCSEA-approved centralized animal house, advanced instrumentation (FT-IR, microwave synthesizer, molecular modeling suites) and round-the-clock research facilities. Extensive MoUs with leading R&D organizations and a NABL-accredited drug-testing laboratory underpin strong industry linkages, while its placement cell sustains an over 80% placement consistency for postgraduate and doctoral scholars, facilitating roles in academia, regulatory bodies, and pharmaceutical R&D .

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For a well-established research environment with extensive funding, high national ranking, and deep industry connections in pharmacological sciences, JSS College of Pharmacy, Ooty offers the stronger platform. However, if scholarship opportunities, interdisciplinary minors, and a growing placement infrastructure are priorities, Lovely Professional University remains a compelling alternative. All the BEST for Admission & a Prosperous Future!

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Asked by Anonymous - Jul 16, 2025Hindi
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Hi. My son is getting VJTI B Tech IT and also BITS Hyderabad campus MSc Chem + B Tech (Dual Degree) What choice should we go for ?
Ans: VJTI Mumbai’s B.Tech in Information Technology operates within a historic, NAAC A-accredited government institute, supported by experienced faculty, modern software and networking labs, an 82 percent overall placement rate (85 percent for IT) over the past three years and strong industry partnerships with leading IT firms. It requires 10+2 with PCM and English and selection via MHT-CET cutoff and counselling. In contrast, BITS Hyderabad’s five-year Integrated M.Sc.(Hons.) in Chemistry + B.E. programme admits students through BITSAT (75 percent aggregate in 10+2 and minimum 60 percent in PCM), immerses them in advanced chemistry and engineering curricula, and allows conversion to the dual degree after the first year based on top-tier CGPA performance; Group C admits may pursue any dual degree within specified limits. Graduates benefit from practice school training, interdisciplinary research projects and placement consistency around 80 percent in chemical and engineering streams. Risks include rigorous workload during dual-degree years, competitive CGPA criteria for continuation and potential difficulty shifting back if performance thresholds are not met.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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