|Assessee has bought insurance ULIP policy by paying one time premium on March 3, 2009. However no deduction was claimed u/s. 80CCC. On March 31, 2012 he surrendered the policy to insurance company and received the amount of 1½ times the amount initially paid. What would be tax treatment of the said receipts? Whether whole amount is taxable or only excess is taxable? If taxable, under which head of income?
|As per the query the assessee has not claimed the amount paid as a one time premium for ULIP policy. However, on surrender of the said policy the assessee has received amount in excess of the policy which would include interest and/or bonus accrued or credited on the said policy, hence the excess amount would be liable to charge under section 80CCC(2) of the Act. The same would be charged under the head ‘Income from other sources’
|CA. H. N. Motiwalla
|deductions, income from other sources, ULIP