Insurance

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srinivas thota (Querist)
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26 December 2013 I HAD INVESTED IN RELIANCE LIFE INSURANCE FOR A PERIOD OF 3 YEARS FOR RS.585000/- AND NOW I HAD CANCELLED THE POLICY. I RECEIVED A SUM OF RS.700000/-. I RECEIVED RS.115000/- EXCESS. WHAT IS THE TAX IMPACT ON THIS INCOME.

PLEASE SPECIFY.

THANKING YOU SIR

@VaibhavJ

@VaibhavJ (Expert)
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26 December 2013 Hi,

If it is pure Insurance then holding period is 2 years then amount received back is tax free.

Pl refer: http://www.simpletaxindia.net/2008/02/saving-under-80c-whose-name-can-be-done.html

Thanks//VaibhavJ