December 13, 2014 1:09 pm
I paid 1-time premium on lic future plus in 2006 and redeemed in 2014. For tax purposes, will the return be treated as normal income tax or as tong term capital gain tax?
You dont have to pay tax on it as its a redemption from insurance product !
Thank you for the response. I got conflicting inputs from different persons – it is taxable or not taxable etc. and needed clarification.
There wont be any tax to be paid , as its after 5 yrs of purchase ! ..
However there might be a TDS involved if its not a pure insurance policy and hence you might have to recover it back by filing a refund
Thank you for the further clarification.
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