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NewsDesk
24-01-2012, 02:46 PM
I had a unit linked policy in Aug 2007, I surrendered it on 23.1.2012. I have claimed exemption u/s 80c IT Act for the year 2010-2011 of Rs 30,000. By surrendering the policy, I will get the surrender money around Rs 99675/-. I need suggestion whether the whole will come under income from other sources or proportionate amount of surrender money comes under tax net.

Via email @ behera.somanath

Manish_Kumar
24-01-2012, 04:31 PM
Check your insurance plan whether it is type I or II and also read this article - Link (http://www.policywala.com/content.php/206-Surrendering-your-insurance-policy-check-income-tax-provisions!)
Surrender of the ULIP, after 3/5 years
The Surrender value of the ULIP plan after 3/5 years (depending on the type I or II) is completely tax-free under 10(10D).

VarunD
24-01-2012, 08:53 PM
If the surrender money is taxable then it will be added to your income under head - "income from all other sources" in the FY, it has recieved.