Dear Team,
I have been paying premiums of Birla Sun Life Insurance Enhancer fund from May 2004 and claiming deduction yearly from FY2004-05 for Rs.20,000/- every year for the past 9 years under section 80C.
The policy premiums had to be paid for 10 years and it matures after 15 years.
However for personal reasons, had to surrender the policy and redeem the entire units before maturity this year (10th year).
So approximately i had paid Rs.1,80,000/- in the last 9 years and redeemed it for Rs.2,15,000/- in FY2013-14
Could you advise if i have to now pay tax for amount Rs.2,15,000/- or Rs.1,80,000/- or the difference of Rs.35,000/- or if the entire redemption proceeds/surrender amount is non-taxable.
Regards,
Ram
CAclubindia
