I had taken and LIC International Policy when I was an NRI in the year 2014. It was a single premium policy. Sum assured is 10000 USD and premium paid was 9674 USD. Now I am not an NRI and have received the maturity proceeds. Is the maturity proceed is taxable? If yes, is the entire maturity amount is taxed or the capital gain only is taxed ? Pls advise
The maturity proceeds of your single-premium LIC International policy are taxable because the premium exceeded 10% of the sum assured. However, only the net gain (total maturity proceeds received minus $9,674 premium paid) will be taxed under Income from Other Sources, not the entire maturity amount.