Lic

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2013 dear sir/madam,

1. if we take LIC policy and if we cancel that policy after few premiums paid, the company refunded some money by deducting with some penalties / other charges. how do we treat this amount while we submitting income tax returns and how much amount we can show.

2. if the LIC policy completes its tenure and if we get premium amount after the completion of the policy, where do we show this amount in income tax returns and how much we show...

please suggest..

regards,

vijay

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 January 2013

1. Section 80C(5) restricts such early withdrawals up to some extent.
If withdrawal is made before paying premiums for 2 years, than it becomes taxable. Otherwise as per Section 10(10D) the amount received is exempt.
2. You can show the full amount received in Schedule EI-under Details of Exempt Income.
You may write the amount against item No. 6 Others.
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