Taxation of amount recd on redemption of units of insurance policy

[rajul begani]

Sir,

I had taken a policy of Rs.2,00,000 .I had paid  premium amount Rs.25,000 for 4 years. I have redeemed  the ICICI prudential balaced fund after the 4  years i.e. after 3 years of lock in period. I would like to know the taxability of the same if i had recd, Rs.1,46,000.00 on the same.

AI Summary

Taxability of insurance unit redemption questioned for proceeds received after statutory lock-in period.
Query on the taxability of redemption proceeds from an insurance linked investment after the statutory lock in: taxpayer paid recurring premiums over four years and redeemed units after the three year lock in, receiving net proceeds; the question is whether those redemption proceeds are taxable or fall within any tax exemption or capital gains treatment under the income tax rules, but the record contains no conclusive legal answer.