Tax on Life Insurance Policy Amount
3 years ago
I had subscribed to IDBI Federal Incomesurance Endowment and Money Back Plan, which commenced from 30.09.2013. I paid premium for 5 years @ Rs. 48501 (total of Rs. 242505/-) as per the policy terms and the term period was 10 years, after which I would have received the Sum Assured (Rs.298190/-). But last year, I surrendered the policy and got back Rs. 223224.56 on 27.08.2019 and Rs. 2232.25 was deducted as tax.
Now, my questions are as below:
1. When I have received less than what I invested, should I have to pay Tax?
2. If the amount is taxable, should I have to declare Rs. 223224.56 or (-) Rs. 19280.44 as the Income from Other Sources?
Govardhan Marada
Responded 3 years ago
A.Dear tax payer,
1.the surrender of the policy will be considered as income under section of 10(10D) . So the tds will be levied .
TDS cannot be considered as the tax paid . we can file the income tax return and claim refund.
2. we can declare the loss in the income from other sources while filing the return and can claim refund of the TDS.
#tax#crime#civil#
1.the surrender of the policy will be considered as income under section of 10(10D) . So the tds will be levied .
TDS cannot be considered as the tax paid . we can file the income tax return and claim refund.
2. we can declare the loss in the income from other sources while filing the return and can claim refund of the TDS.
#tax#crime#civil#
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