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Tax treatment for surrender of ulip policy of market plus

Devendra (Chartered Accountant) (4775 Points)

14 July 2012

Mr. X had invested Rs. 200000 in 2006 in ULIP Policy (LIC) of Market Plus. Now in April 2011 he received (ie. on surrender) Rs. 600000 against it. So What will be the Tax Treatment on surrendering the ULIP Policy (LIC) of Market Plus?

Please guide.

Regards,

Devendra Kulkarni

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3 Replies

CA Hemant Jain (Job) (139 Points)
Replied 14 July 2012

Kindly refer the below link

https://taxworry.com/be-ready-to-pay-tax-on-surrender-of-ulip-or-pension-plan/

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CA Hemant Jain (Job) (139 Points)
Replied 14 July 2012

ULIPs have a lock-in period of 5 years. surrender before 5 years attracts income tax and withdrawal of previous tax deductions (if availed). surrender after 5 years is fully tax-free.