I have been mis-sold two ULIP Policies-SBI LIFE UNIT PLUS II. One policy started on 8 Feb 2008 and Other on 14 July 2008. Have paid their premium for 3.5 years totaling 1,05,000 for each policy. So totalling 2,10,000 was paid for these ULIPs. Surrended these policies in Feburary 2012. Got 2,00,844 as surrender value. Claimed Income Tax Rebate of 60000 in Year 2 & 3. Nothing Claimed as tax rebate in this financial year for 30000 deposited.
I have following query. These links didnt clear my queries-
http://localhost/jagoforum2/tax-implications-on-ulip-surrender/2271/
http://localhost/jagoforum2/tax-on-surrender-value-ulip/3869/
Is the surrender amount taxable? If yes, whole of it or do I need to add the amount claimed as IT Rebate in Year 2 & 3 in 2,00,844 i.e. 3,20,844? Im stressed a lot due to this.
Can anybody help clear my doubts especially Manish? Need to file ITR soon.