CHARTERED ACCOUNTANT
175 Points
Joined June 2009
Dear Sainath,
As per Section 80C (5) (i),
Where a tax payer discontinues/surrender a policy of life insurance before premium for 2 years have been paid, or in case of single premium policy, within two years of its commencement, no deduction will be allowed in respect of the premium paid in the year in which policy is terminated.
Further, deduction allowed under this section for premium paid in the P.Y., shall be deemed to be the income of the assessee for the P.Y. in which the policy is terminated/surrendered.