I had a whole life insurance policy (icici pru) overseas for 10 years. I paid premiums of 2 lacs per year for the first 5 years starting 2013. When I bought the insurance, I was a `resident for tax purposes`, but now I'm a US citizen. I understand that the policy's proceeds are tax-free in India but are taxable in the US. I received the lump sum amount on the date of maturity last year, which includes the original amount and the profit. I'm not sure how to classify this payout (net profits): Is it considered interest or dividends? And where should I report this income on my tax return ? Appreciate your quick response.
