Q: In 2001, I took two Bima Nivesh insurance policies (one-time premium) of 6 lakh for which premium was less. Now by the end of this year (after 5 years) I will get 9,17,000. Please tell me:
- Is the excess amount of Rs 3,17,000 taxable?
- If yes, can I show this amount in two years i.e. assessment year 2006-07 and 2007-2008?
- Is there any way to save tax by investing in NABARD?
I am 74 years old and my income from fixed deposits is Rs 1,30,000. Due to taking excess antibiotics, my vascular vein got damaged resulting in the imbalance. While walking I have to hold somebody's hand or along with the wall, that too not much. Can I take any rebate for this and how? I am also a heart patient.
A: The amount received on the maturity of Bima Nivesh policies is exempt from tax. The question of taxability of the amount received therefore would not arise.
The deduction against the total income u/s 80U of the Act is allowable in case a person is suffering from disability as defined in the said section. The individual claiming a deduction under the said section has to furnish a copy of the certificate issued by the medical authority in the manner prescribed by the rules. The disability as defined in the said section includes blindness, low vision, leprosy-cured, hearing impairment, locomotor disability, mental retardation, mental illness.
