Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Service Tax »
Open DEMAT Account in 24 hrs
 Income Tax Returns: What are the consequences of not verifying your ITR within 30 days
 Income Tax: Want to update your ITR? You can file an updated tax return; Here s all you need to know
 ITR Filing 2024: How to check income tax refund status online using PAN card? A step-by-step guide
 ITR Filing 2024: Which Income Tax Regime Is Better For NRIs? Check Expert Inputs Here
 ITR filing 2024: How to check income tax refund status online? A step-by-step guide
 Income Tax Return: Why should you wait till June 15 to file your ITR for FY24?
 Income Tax Return: How to access and review your Annual Information Statement before filing ITR
 ITR filing forms for FY 2023-24 (AY 2024-25): Which income tax return form applies to you?
 Income tax slab rates for FY 2024-25 (AY 2025-26)
 ITR Filing 2024: Received Arrear Money? Here's How To Get Relief Under Section 89(1)
 CESTAT Sets aside Service Tax Demand under BAS as OLSP providing service not as an Agent of Assessee

What is tax liability if I surrender my insurance policy before maturity?
May, 20th 2019

If you surrender the policy and opt out of the annuity scheme, the entire sum received by you from the insurance company will be treated as income.

I invested in a pension plan and paid a total premium of Rs 15 lakh between 2009 and 2013 (Rs 3 lakh per annum). The value of the accumulated corpus is Rs 27.40 lakh. The plan will mature in September 2019. If I surrender the policy and opt out of the annuity scheme, what would be my income tax liability on Rs 27.40 lakh? I fall in the 30% tax slab.

Amit Maheshwari, Partner, Ashok Maheshwary and Associates replies, "If you surrender the policy and opt out of the annuity scheme, the entire sum received by you will be treated as income and will be taxed at the applicable slab rate. At 30%, the tax will work out to be Rs 8.22 lakh. If you wait till the policy matures, you can withdraw a third of the maturity amount without any tax implication. The rest will be paid to you as annuity. Annuity will be included in your income and taxed as per the applicable slab rate."

I am a 45-year-old businessman. I received Rs 30 lakh from the sale of a property, in accordance with my father’s will. Will this be added to my income for the current year? Will I have to pay tax on this?

Rakesh Bhargava, Director, Taxmann replies," Gifts received from relatives are not taxed. The list of relatives includes parents. So, the amount received won’t be taxed in your hands. However, you father or his legal heirs may be liable to pay tax on the capital gains that may arise from the sale of this property."

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting