Surrender of ulip policy

This query is : Resolved

Ameya (Querist)
Follow

11 May 2016 Sir,an individual had a ULIP policy which he surrendered before making contributions of first 5 years.He received a cheque for the termination.Then will the amount received alongwith amts claimed as deductions u/s 80C in previous years get taxed?Or only amts claimed as deductions will get taxed? and what if no deduction of the same has been neither reported nor claimed in previous years?

praveen

praveen (Expert)
Follow

11 May 2016 If deduction was claimed in the previous year the same will be taxable. Even the extra amount received will be taxable.

Ameya

Ameya (Querist)
Follow

12 May 2016 Dear Sir,it it so that the amt received is taxable to the extent it exceeds the indexed cost of acquistion,since the investment being one in the nature of mutual funds.....?

Upgrade to CAclubindia Pro. Subscribe Now!