One of my client invested Rs. 4.00 lakhs in unit linked insurance plans which is eligible for deduction U/s 80 C of the Income-tax Act. Over and above this, his other investments in 80 C was Rs.1.00 lakh and claimed deduction U/s 80C for Rs.1.00 lakh. by virtue of the excess investment,he could not claim the benefit U/s 80 C. The above said unit link insurance plan was surrendered within 5 years (this being the minimum period of holding/contribution for unit linked insurance plans) and the amount was received during the Fin. year 2013-14. Anybody, kindly clarify me, whether this withdrawal is taxable as income for the Asst. year 2014-15? If so, under what provisions of the Act ?. Kindly provide any write up or case laws on this issue.
CA S. Mahadeven
CAclubindia
