A) Background information :
1) Plan ICICI Pru Life Stage Pension Advantage UIN 105L100V01 / Non Medical, (Old Scheme – Now discontinued)
2) Start date 10 Jan 2010, Policy Term 10 years, Vesting (End) Date 10 Jan 2020,
5) Sum Assured Zero,
6) Annual Premium Rs 1,50,000 Paid for three years and stopped thereafter but stayed invested and policy continued for 10 years, Principal amount invested in Units of Pension Multi-cap Growth, Balance and Income fund of ICICI Prudential.
7) Upon completion of 10 Years,I shall get the proceeds total value of Units as per NAV on Vesting / Redemption date 10 Jan 2020.
To my belief there is life insurance benefit in the scheme. Money is invested in form of units with variable NAV and subjected to market risk like any other mutual fund. So kindly reply to my following questions specific to my case as described above.
Q1) Will the gain be Taxable or Tax free and what shall be percentage Tax , Will it be a capital gain ? Please quote Ref IT Rule for my education.
Q2) Will the Principle Part shall be Taxable, if 80 C tax rebate was taken on yearly investment for 3 years. Please quote Ref IT Rule for my education.
Q3) Will the Principle Part shall be Non-Taxable, if 80 C tax rebate was not taken on yearly investment for 3 years..
As the policy was issued before 2012, and the premium paid is not fulfil the rule of premium should be 20% or less than that of sum assured, the income is taxable. Refer the below post for more clarity.
Budget 2019 – TDS on Life Insurance Maturity Amount