No, you dont need to pay any taxes for this amount.
Regarding tax calculation of insurance premium surrender
I have a insurance policy in my father name and paid around 9 installments, October 2016 surrendered and got the refund value of 2,30,000. My father got credit in his account. He transferred the amount to my account , I Paid it to My Home loan. i want to know whether i have to pay tax for this amount or not.
Asked 8 years ago in Income Tax
Thanks for your kindly reply sir, My father pledged jewels and got the money and transferred to my account and same i paid to home loan , Let me know if this also come into tax deduction or not.
Asked 8 years ago
Hello,
You will have to go through your policy documents to confirm if the surrender value of the policy is taxable or not. In case it is taxable then tax has to be paid on the same.
If it is not, then nothing has to be paid and you will not get its credit while filing your returns.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hi,
Please refer to your insurance document to check whether the amount received on surrender of policy is taxable or not. If it is taxable, then it will be taxable in the hands of your father.
The amount transferred by your father to you will be exempt in your hands.
Trust this clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
It will also not be taxable. You need to record the money as gift or loan in your books of accounts depending upon the nature.
Please feel free to call revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
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