One of our clients had invested in two Pension Fund Schemes. He has held and paid premiums on these policies as below:
Pension Fund I : 7 years
Pension Fund II : 5 years
Now, in the FY 2014-15, he has surrendered both these policies and has invested the proceeds received there from in fixed deposits. Further, he had also not taken any deduction in the preceeding years u/ 80CCC with regard to the premium paid on these policies.
What will be the tax treatment in the FY 2014-15?
What is the type for each PF scheme? Recognized ? Unrecognized ? Statutory ? Public ?
One is wih ICICI Bank - Pension Maximiser Fund II
Second is with HDFC Bank.
Proceeds from pension fund r taxable in the year of receipt i.e.FY15 . If such FD is recognised for investment u/s 80C, then it can be claimed as deduction. But if deduction u/s 80CCC was never claimed, then in such case, only accrued interest, bonus etc would be taxable I think.
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