Tax implication for ULIP Surrender after 7 years (No lock-in but premature surrender)

Ragini (manager) (4 Points)

19 January 2021  

HDFC LIFE ULIP Plan Premium- 1lakh/year.

Tenure-15 years

Sum Assured Insurance amount- 10 Lakh (10 times of premium)

Started in Feb 2014.

 

So, it has been 7 years since I bought this ULIP and now I want to surrender it as the lock-in period of 5 years is over. I can surrender it and get full fund value as it has been more than 5 years

. My question is

1) How will this affect my 80C deduction (which I have already claimed) especially for the last 2 years? Will I have to pay tax on deductions claimed for the last 2 years. Or it is exempt as my ULIP plan is more than 5 years now.

 

2) What is the tax implication for surrender value? Is it fully exempt after the lockin period?

Thanks