LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

80c deduction in next a.y

29 July 2011

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.

Reply
Follow
Share

6 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 29 July 2011

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

1 Like

Ritu Sedwal (Chartered Accountant) (407 Points)
Replied 29 July 2011

Even my opinion also refund will not be taxable

1 Like

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 29 July 2011

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

1 Like

TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
Replied 29 July 2011

Agree with Ms. Roopali Kadams answer.

1 Like

Nirmal (B.Com, M.Com, CAFinal) (93 Points)
Replied 29 July 2011

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

1 Like

TARUN KUMAR GOEL (COMMERCIAL CUM ACCOUNTS MANAGER) (37 Points)
Replied 31 July 2011

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

1 Like