Do you have income tax queries?
Lancelot D'Souza: I had ICICI Pru Insurance that I had redeemed. Details are given below:
Product: Life time Gold ICICI
Fund name: Flexi Balanced fund
The policy was issued in December 2007. Total premium paid was a total of Rs 75,000 in instalments of Rs 25,000 in the years 2007, 2008, 2009. Rs 71,700.75 was invested in Flexi balanced fund and Rs 3,299.25 for insurance cover.
The policy was closed in August 2021. Total fund value received on closure Rs 1,82,196.63 (Total units 5,457.68 Value per unit (NAV) 33.39). These were the details that I got from ICICI Pru.
The capital gain is not appearing in my AIS statement. Please let me know the following:
1. Is it true that if the details do not appear in my AIS statement as the insurance is old, I do not have to pay a capital gains tax and I only need to fill in ITR1?
Anil Rego: Yes, you can go ahead with ITR1 filing but will have to note the following:
You are likely to have received a tax-free Maturity Benefit for insurance policies subject to conditions of Section 10(10D) of the Income Tax Act (1961) below:
You can avail the exemptions under Section 10D if the premiums paid in a single year during the policy term are not more than 20% of the sum assured for a policy purchased between 1st April 2003 and 31st March 2012.
You will need to check the Sum Assured of the policy and if it satisfies the above criteria, you can show it in your returns as Income Exempt from tax.
2. If I need to fill ITR2 (I have been filing my own returns and have only filled ITR1), please let me know in ITR 2 how the capital gains has to be entered with what amount and in what schedule of the ITR?
Anil Rego: I am not clear if this question you are referring to is also related to the ULIP policy of yours. As explained above, you don’t need to pay tax on this if you fulfil the Sum Assured criteria for the policy. In such case, you can show it as other income that is exempt from tax.
If you are asking a generic question, or even if your ULIP is taxable, you will need to fill out the capital gains schedule in the ITR 2, providing scrip-wise details for long term capital gains while filing ITR 2. This will include ISIN, Selling Price, Purchase price, date of different transactions and more.
Rajesh Waykole: My father passed away on 23 May 2022. I wish to know below: His name is in savings account & FDs as first or second name along with my mother’s name or my name with either or survivor. I wish to know whether his name to be deleted soon or how long it can be kept?
Anil Rego: If the depositor has passed away before the maturity, and if there is no other joint depositor, the nominee will receive the maturity benefit (if nominee is not mentioned, the legal heir will receive the whole maturity benefit).
If deposits are in Joint Names with Survivor ship Clause, then it is sufficient for you to make a simple application along with a photocopy of the Death Certificate for record of the Bank. You can continue with the account by deleting the deceased depositor's name.
The balance of the savings account where your father is the primary account holder can be transferred to a new account in your /mother’s name.
How to file his ITR 2021-22 & 2022-23? For ITR refund, his name in savings account has to be there till refund comes?
Anil Rego: For both the assessment year’s the legal heir would first be required to register on the income tax website as the legal heir of the deceased and then you can file the ITR on behalf of the deceased. Yes, the name should be stated in the returns with the details of the legal heir till the refund is credited
When and how should his PAN be updated?
Anil Rego: PAN card is not considered valid after death. The representative or legal heir must surrender their PAN card to the income tax authorities in such cases. This can be done after filing the ITR of the deceased in the same year of the PAN card holder's demise.
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