banner_ad

Lic premature surrender policy proceeds - taxation

Tax queries 462 views 2 replies

Hi,

I had taken a Jeevan Anand Policy in 2013. I had paid the annual premiums for 5 years and subsequently had surrendered the policy in November 2018. At the time of surrender, the surrender value was paid to me which was 40% less than the premiums I had paid. 

I have the following queries:

1. Will this surrender negate the tax benefits I have already claimed?

2. Is the redemption proceeds on this premature surrender taxable? If yes, is it taxed as per the routine income tax slab?

Thank you in advance for the help

 

Replies (2)
1. As u have completed 5 policy year, you not need to reverse the tax benefits that you have claimed. 2. Surrender proceed is taxable however claim amount over premium paid is only taxable as in your case it is negative so no tax. However same time tds us 194 DA tds can be deducted by insurer if total proceed exceeds rs 1 lakh which will be claimed by you as refund.

Thank you for the reply

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
07 June 2026
Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details