April 7, 2012 4:13 pm
If I buy the insurance (health) policy in FY 11-12 and and return the same in FY 12-13, are there any tax implications?
Dear Amar, do you mean, you purchased the policy in the last week of March 2012 & want to claim 80D benefit on this policy for FY 2011-2012 & in the next 15 days days or so, you are surrendering the policy?
Forget Tax implications, why do you want to indulge in such practices? What’s the need to do so?
I mean, If I return the policy due to unaccepted of T&C therein. I have purchased Royal Sundaram’s Family Good Health policy on 24th Feb 2012 and yet i am not in receipt of policy documents after follow up. Also I found list of diseases in the two year exclusion’s such as Heart diseases etc. in the info brouchure. This is really different from many polices I have seen. Of course this would be clear on the receipt of policy documents. Thanks.
If you return the policy the tax exemption cannot be claimed. It is unfortunate you will be unable to utilize your 80D deductions but that is how it works.
Take away: This may be a good reason for people to purchase policies from April to December and not in the last 3 months of a Financial Year.
Dear Amar, forget section 80D benefit, the most shocking thing is you are not sure that policy has been issued or not & if something happens to you (in terms of illness & claim there on) who ‘ll foot the bill? Please confirm first that policy has been issued or not. If it has been issued, why it has not been there with you? In case you are not satisfied with the T & C of the policy, you have the option to cancel this policy & purchase a new one.
In my opinion, you should purchase a new policy from the insurer of your choice. Now to cover you & your family
If you return the policy (I assume in the 15 day free look up period) the policy is in essence not taken/issued and hence tax exemption cannot be claimed.
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