I started ₹510 monthly contribution for LIC Jeevan Saral with cover of ₹1,25,000 in June 2011. I surrendered it in October 2015. I received surrender value in my bank account which was roughly ₹18-19,000. I want to know if 80(C) tax benefits will be reversed or do I need to pay tax on surrender value income?
- Rohit Murarka
On surrender of LIC Jeevan Saral policy after two years, there will no reversal of Section 80C tax deduction benefits availed. However, the surrender value will be added to the income from other sources in the financial year 15-16 and will be taxed as per your tax slab.