Tax on Deferred Annuities from life insurance

Hi,

Need help on calculation of tax on Annuity if applicable-

D.O.B - Dec 1963
Date of proposal - Dec 2003
Date of last premium - Dec 2022
Date of vesting of Annuity - Dec 2023
Date of first annuity installment - Jan 2024
Premium amount - 10,000 per year

NCO + Bonus + 3 percent rebate amount = 4,23,809
25 percent commutation payed on Dec 2023 = 102866
Balance 3,17,857 - Annuity amount 19,866 payed yearly staring Jan 2024

What is the taxation on Annuity?
How to calculate Exclusion Ratio and Exclusion Period?

Thanks.

Hello @Anan28

In your case, 25% of the amount received will be tax-free. Additionally, the monthly annuity starting from Jan 2024 will be taxable under Income from Other Sources as per the slab rates.

Hope this helps!

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