I have surrendered a pension policy from HDFC Life before maturity. My questions are: 1) Is the tax to be paid on the entire surrender value or the excess of the surrender value over the premiums paid? I have not claimed any 80 CCC benefit for any of the premiums paid. 2) Is the tax to be paid immediately (I have received the surrender value in my bank account) or can it wait till I file returns in July next year?
Hi,
- Section 80CCC says if benefit of premium is taken then surrender value will be taxable. In your case as you have not taken the benefit u/s 80CCC then premium will be deducted from the surrender value.
- Please ensure you have not taken any benefit of premium paid.
Thanks
Hi,
Hope you are doing well !
1. You will have to pay the tax on entire maturity proceeds.
2.You can wait till the return filling.
Dear sir,
If you have not claimed benefit under Section 80CCC than tax is only required to be paid on surrender value over and above premium paid.
You need to pay tax as per your status. Meaning thereby if your total tax liability exceeds Rs. 10,000/- than you are advised to pay it before end fo March to avoid interest payment thereon. Otherwise you can pay tax till the time you file return with payment of Tax and interest if any applicable thereon.
Hello Sir
1.Yes sir tax is be paid on the excess of the surrender value over the premiums paid.
2. If your tax liability is upto Rs. 10,000/-than you can pay tax till return filling and if tax liability is more than Rs. 10,000/- then pay advance tax.
1. You will have to pay tax on surrender value over and above the premiums paid.
2. Yes, you may consider paying tax immediately otherwise interest will be applicable.
You need to pay tax on surrender value less it's premium paid as it will be taken as investment.
If there is a liability of advance tax you need to pay it now if there is no liability of advance tax you can pay tax at the time of filing return of income.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
You will have to pay tax on the difference of the surrender value and the premiums paid.
Please pay the taxes immediately to avoid interest payments on this amount.
Regards,
Nikhil.
Hi
1. The tax needs to be paid on the excess of surrender value over the premiums paid.
2. You need to pay the taxes immediately if the tax for FY 18-19 exceeds 10000 as advance tax becomes applicable. For non payment of advance tax, interest shall be levied.
Hi
1.You have to pay tax on surrender value over the premiums paid,means surrender value minus premium already paid.
2.You have to pay it any how so its advisable to pay immediately.
Hope it helps
