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Ans: Gift received from son is not an Income. So there will not be any tax implications on transfer of flat by son to father. In future when father transfer the flat, cost to the previous owner (son) will be cost to current owner (father). Date of acquisition will also be date on which son acquired flat.

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The enhanced survival benefit under option 2 is essentially a lump sum amount withdrawn before the policy matures.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

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