ULIP / Policy taken out Oct 2012. Single premium Rs. 4 lakhs paid for sum assured of Rs.5 lakhs (clearly not 1/10). It is basically an investment policy.
No tax benefit claimed in 2012 or later. In 2022 (July), the policy was surrendered few months before maturity, for approx Rs.12 lakhs. I am aware 10 10(D) is not available,
Questions are:
1. Does it become like share market gains, LTCG so under S 112A can the value as of 31.Jan. 2018 become the starting point. At that time, it was approx 8 lakhs, so the gains reduce to 4L (12-8) not 8L (12-4)
2. There is some write up on ENTIRE amount (12L) becoming taxable? Is it that? Or 8 or 4?
3. TDS has been made of Rs.40000 approx. Not sure how that was computed. I presume 5% on 12L but it doesn't add up.
4. Should I pay advance tax to avoid interest or penalty, and if yes, on what basis?
Thanks in advance!
CAclubindia
