question 30 of 60\ninterest earned on policy dividends is\na. 50% taxable.\nb. not taxable.\nc. tax…

question 30 of 60\ninterest earned on policy dividends is\na. 50% taxable.\nb. not taxable.\nc. tax deductible.\nd. taxable.

question 30 of 60\ninterest earned on policy dividends is\na. 50% taxable.\nb. not taxable.\nc. tax deductible.\nd. taxable.

Answer

Brief Explanations:

Policy dividends are generally considered return - of - premium in nature and the interest earned on them is not taxable. This is because they are not considered as income from an investment in the traditional taxable sense.

Answer:

B. Not taxable