LIC surrendered

Dear Sir,

18 Lacs shall be considered as income from other source since premature surrender of LIC is done.

Hello Sir,

In order to guide you please let me know your nature of transactions. Are you salaried or into business or something else.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Hi,

If the premium is more than 10% of the sum assured, any money received from a life insurance policy is fully taxable. As the premium paid by you is more than 10% of the sum assured. So, the amount received is fully taxable. You need to add the amount received under income from other sources.

So full amount of rs 18 lakhs is taxable in your hands and will be added with your other income to calculate tax .

Since, the premium paid is more than 10% of the sum assured, you are liable to pay tax.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

If it is loss then you need to show the same under other sources and also if it is profit then it is taxable in other sources of income.

As per your statement we see that you surrendered/ bank surrendered the same and it was in Loss as you have invested 23.86 lakhs and received 18 lakhs.

Hi

You will have to check your insurance policy whether the surrender amount is taxable or not. The taxability varies with each policy.

Depending on your policy, if the surrender amount is taxable then the amount of deduction claimed? by you on the payment of premium amount is only taxable. Bonus or any additional amounts received from LIC, may also be taxable.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB