Proceeds from single premium policy (HDFC Life)

..

1. No. Not eligible.

2. On profit of Rs. 8 lakhs.

3. TDS deducted 5% on the said profit.

4. Yes, calculate advance tax as per your slab rate, including the profit.

Thanks Shri Rambhia. That's a very clear reply 

Re 1, are you saying 112A not applicable or the grandfather to 2018 not applicable? Cos, the rate in this section is 10% not 20%. 

Looking at your reply to 4, it seems you are saying the 8L becomes not LTCG at all, so neither 10% nor 20% but just regular income? Other sources? Or perhaps 112?

Thanks in advance

1. Insurance policies are not considered as Investment. So, no question of LTCG or grandfathering.

2. Assessed under IFOS.

Thanks sir!  That's bad news but at least I'm clear..

Could not help beyond provisions defined in the act, sorry....

Ha yes, it is nice of you to explain. Just to take it up a bit further, I find it odd that govt has inserted 45 1B that says such payouts are CG but then that is only for those policies covered by proviso 4,5 of 10D. That means those NOT covered by those proviso but get hit by 10D are sort of in no mans land without any clear indication of LTCG/IFOS. Wonder if this slip up is accidental or intentional and if there's a chance CBDT will do something.

Question is, based on the above intention of law (classifying such payments as LTCG) is it worth pursuing on appeal etc to treat as LTCG even cases like mine that are not covered by 451B? Of course this makes sense if tax slab is much higher than 10%.

Added later: I would assume that there is no specific section or clause that clearly says ULIP are NOT capital asset. 

Yes, you can extend the interpretation and take a chance to offer LTCG tax at 20% after indexation