I am a retired public service employee. Back in 1.8.2012 when I was still working, I took a LIC bima bachat policy on which Rs 25 lakhs was the sum offered. I had to pay one time premium for Rs. 18,72,345. After 2 years, I took a loan from UCO bank of Rs 12 lakhs on the policy.
Now, after 3 years of that, the outstanding amount was cleared after the bank surrendered the policy. Bank received Rs 15 lakhs as surrendered amount.
My question with regards to this surrendered amount is:
How do I treat this amount tax-wise, i.e under which head, rates etc in my ITR?
Jan. 08, 2018