Tax liability insurace receipts

This query is : Resolved

Prabhatha (Querist)
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29 July 2016 Invested Rs.12,12,094/- in LIC Bhima Nivesh 2005 a single premium policy on 11-10-2010.
Received Rs16,82,851.95 on 10-10-2015 after TDS @ 2%.
What is the Taxable Value?
As per view it is Rs. 4,70,758.

Please clarfy.

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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29 July 2016 Full amount received is taxable.

Message likes : 1 times

Prabhatha

Prabhatha (Querist)
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29 July 2016 But Premium paid in the beginning is out of the savings after payment of due taxes. Is it not results in double taxation?

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CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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29 July 2016 The words used are 'any amount received...' hence full amount is taxable. Basically this is to discourage people from buying insurance policies only for tax breaks. Long term policies enjoy full tax benefits.