MCQ

Mr. J, a resident of age of 70 years, is due to receive Rs. 2,20,000 on 31/3/2023 on LIC policy taken on 1/4/2010, for which the sum assured is Rs. 2,00,000 and the annual premium is Rs. 45,000. What will be the applicability of provisions for TDS u/s 194DA.

(a) Tax is deductible on Rs. 2,20,000 since annual premium exceeds 10% of sum assured

(b) Tax is deductible on Rs. 2,20,000 since annual premium exceed 20% of sum assured

(c) Tax is deductible on Rs. 2,20,000 since annual premium exceed 15% of sum assured

(d) None of the above