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Mihir Tanna  |1054 Answers  |Ask -

Tax Expert - Answered on Nov 08, 2022

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Deepak Question by Deepak on Nov 08, 2022Hindi
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I have taken a plan of SBI Smart Gold Money Back 5 year back. Till now I have submitted 5 premium of approx 98 K plus. SBI gave me a survival benefit after three years (1.8) and deducted the TDS. I asked them why the amount is taxable and they replied because the yearly premium is more than 10 times of Sum Assured (9L) so survival benefit /Maturity benefit and Surrender value will be taxable. I am surprised as I am getting less amount as compared to amount giving as a premium and still the amount is taxable.

Is there any way to make the amount free from Tax? What is your suggestion on this?

Ans: They are correct on the part of deducting TDS. Exemption on survival benefits is available only if premium is less than 10 times of sum assured. Only normal deductions like housing loan interest, investment in tax saver avenues like MF, NPS etc., can save your tax.

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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