Q: I have an "ICICI Pru LifeStage Pension Advantage: 105L100V01" 15 year policy taken in 2009 with no sum assured. Paid premium for 3 years and have not claimed any IT exemption U/s 80C/80CCC, this policy matures in 2024, and doesn't have any sum assured. I now want to surrender or make a partial withdrawal in this policy, and don't plan to opt for any Pension option. Can you please clarify my below queries related to my tax liability:
- Will my surrender/partial withdrawal proceeds be taxed or is it tax exempt?
- If the proceeds are subject to income tax, then is it the whole proceeds or only my gains that will be taxed since I've not availed any tax exemption, and under which head (Other source or capital gains)?
CAclubindia
