'Will Surrendering Pension Policy Attract Tax?'

Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Vipul Bhavsar, a chartered accountant -- with 16 years of experience -- from The Institute of Cost Accountants of India, will answer them.

Anonymous: I have a Life Time Super Pension Policy of ICICI Prudential with following details: Sum Assured: 720000 Premium paid from 2007 till date and total premium paid Rs 669,000 (Rs 3,000 per Month) and maturity in 2027. Current value of the fund is around 21 lakhs.
My queries are: In case I surrender before maturity or opt for annuity, what is the tax implication?

If surrendered before maturity then -- Fully taxable

If opted for Annuity then -- Taxable as Other Income as per your tax slab and regime

Please consult a CA to get the exact liability as the policy document, term, payment done needs to be checked.

Anonymous: Sir, I have filed my returns in time in form itr2. I had some stcg on account of sell of shares and also ltcg on account of sale of property. The tax calculated was paid before 15th Sept 2025. I am a sr citizen. What is disturbing is, so far I have not received any communication from tax deptt. What does it mean?
Has my file gone under scrutiny or it is usual? What should I do, please advise?

I trust you have cross checked the AIS and TIS before filing Return of Income. From this year, Income Tax has purposefully not processed returns where there is discrepancy evident from the details filed in the Return and then those details available in AIS TIS.

However, if there is no such case, you must relax and wait for Income Tax to process the Returns. Have patience.

Anonymous: My client brought the land in 1965 and guideline value obtained in 2001. He sold the property in September 2024. Is it 115jc applicable or computation at special rate? If any suggestions or computation may welcome.

Long Term Capital Gain shall be calculated. Since sold after July 23, 2024, new provisions of taxation shall be applicable

Various other points like whether the land is rural, agriculture or other land is required to be ascertained.

Aniket: I am Sr Citizen aged 78 years old. Have wife aged 74 years and one son based in US (US Citizen) and one daughter based in India. I have made a will wherein after my demise the flat will be transferred in name of my wife. The MF and Direct equity will be transferred in name of my Daughter. I have kept Nominee as my daughter for my Demat and Trading account. I have the following questions:

How do i make provisions that in case my nominee dies after me the proceeds will go to my daughter? (My son is not interested as he is US Citizen and will incur additional Tax in case of Inheritance).

A will if made in writing can always be amended in the form of new will. You may by giving reference of old will as well or can say that old will to be considered as null and void since this new will be made.

You can make all the necessary changes in the will as you wish.

Please make sure that you get the will registered and witnessed.

Hitesh: Dear Sir.. I sold a residential house for 2.5 crores in year 2022-2023… 20 October2023... after indexation the capital gain was 1.5 crores. I bought another home on 22 October 2023 for 3 crores. While filing the return I adjusted this 1.5 crore capital gain under section 54 against the new house which I bought for 3 crores. On 15 October 2024, I sold my shares worth 70 lakhs. These were long term.
Now I am claiming exemption for this total amount under section 54 F for a house which I had bought less than a year earlier (although out of 3 crores investment into this new home, I had claimed 1.5 cr exemption under section 54 in previous year). With my limited knowledge I am fulfilling the conditions of sec 54 and sec 54F and both can be claimed against same property though in my case the assessment years are diff?

Yes, prima facie looks correct.

But I strongly advise you to consult CA in order to actually claim exemption after checking the papers.

• You can ask rediffGURU Vipul Bhavsar your questions HERE.

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Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.