Surrender of ulip

I purchased a single premium ULIP for Rs.99000/- on 7.10.2010. The same has been surrendered on 10.8.2016 for Rs.128200/-, TDS done Rs.1282/-. Sum Assured Rs.124875/-. Maturity date of ULIP 7.10.2020.

In my tax return I offered 128200-99000= 29200/- as taxable. But have received 143(1)(a)(vi) for mismatch of income as per 26AS and as offered in IT return.

What will be taxability in my hands, considering no benefit u/s 80C has been taken?

Replies (1)
if the premium payable in any year exceeds 10% of the actual sum assured, then the policy proceeds would be taxable in the hands of the insured.In your case, TDS has been deducted, It means the said sum is not exempted under section 10(10D).
You are required to show total surrendered value 128200/- in your ITR. It is irrelevant here whether you have claimed deduction under section 80C.

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