August 11, 2014 1:29 pm
i am planning to surrender my 4 year old LIC’s Jeevan anand policy…is the surrender value taxable? What are the other tax implications for that?
if life insurance policy is surrender after 2 years then maturity value/surrender value is not taxable in your hand.Infact it is never taxable .
However in case you have encashed your policy before completion of 2 years then you have to add back 80 c deduction earlier claimed ,But in your case three years has been elapsed so no need to worry amount is not taxable at all
Pls note that your sum assured in policy must be 5 time of premium paid yearly means sum assured must be 160000 rs
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