Insurance related

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Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2012 policy taken in Apr 2003 and premium is rs70000 for a Rs10Lac sum assured.Was only Rs50,000 deductible under 80C and if policy was surreneded in Apr 2011-how does one calculate one's tax liability?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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15 April 2012 I think you are saying about the life insurance policy. Those policies which are surrendered or matured after the completion of 2 years from the date of commencing are not liable for any tax and such proceeds amount exemption. In case it is unit linked policy the time period specified is 5 Years.

So based on the above provision you are not liable for any tax on such surrender proceedings of the policy in either cases because you hold the policy for 8 Years.

OM SAI SRI SAI JAI JAI SAI

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