whether the amount received on surrender of Life insurance policy is taxable???
If Yes under which section and vice versa
SUNIL GARG
(CHARTERED ACCOUNTANT)
(175 Points)
Replied 17 January 2011
Dear Sainath,
As per Section 80C (5) (i),
Where a tax payer discontinues/surrender a policy of life insurance before premium for 2 years have been paid, or in case of single premium policy, within two years of its commencement, no deduction will be allowed in respect of the premium paid in the year in which policy is terminated.
Further, deduction allowed under this section for premium paid in the P.Y., shall be deemed to be the income of the assessee for the P.Y. in which the policy is terminated/surrendered.
CA. Deepak Kumar Gupta
(Paid Assistant)
(25 Points)
Replied 06 June 2011
wat if 2 yrs has elapsed????
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