80c deduction in next a.y

Can anybody please tell me if a person has taken any insurance policy in march 2010 and has taken claim in sec 80c in a.y 2010-2011 but in april he has cancelled the policy and got the refund back in his account, What will be the tax treatment for the refund he got in april 2011 while filing the return of a.y 2011-2012.

Thank you.

Replies (6)

I think the refund will not be taxable. Wait for others to reply.

Even my opinion also refund will not be taxable

U/s 80C(5) deductions allowed in previous yr or years preceding such p.y. shall be deemed to be income of the assessee.....if such contract of insurance is terminated

Agree with Ms. Roopali Kadams answer.

In The year of Tacking Policy Duduction can be allowed but it not more then 20% of sum assured

in the Year of Discontinue/cancelled the policy the realised amount would be taxable

Beacause there is Policy Discontinue/Canclled

otherwise in normal terms policy installment alloe as deduction u/s 80c

& at the time  of maturity the received Amount not taxable

hi..

In my opinion you will get the benefit of the premium in the year in which it is paid i.e. asstt year 2010-2011 and  the prematurity amount will also not be taxable.

Thanks

Tarun K Goel

 

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