Amount received on surrender of pension funds

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?

Replies (4)

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.

Entire SV taxable. Only commuted value on vesting is tax free. Read sections 80 CCC(1), 10(23AAB) and 10(10)(iii).

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