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Taxability of unit linked insurance plan

Tax queries 758 views 3 replies

Nagarajan

Consultant

35 Points Joined December 2010

I purchased two Unit Linked Insurance Plans from ICICI Prudential in January 2009 and December 2008. I paid premiums for 3 years. I didnot claim any benifit U/S 80C for the premium amount as I was fully paying PPF

I want to surrender the policies now. Is the surrender value is taxable fully incl the premium amount or excluding premium amount/ Any indexation benifit is available on surrender value. Thanks. Nagarajan

Replies (3)

CA SONIYA AGARWAL

self practice

3005 Points Joined December 2009

THE SURRENDER VALUE WILL BE TAXABLE UNDER INCOME FROM OTHER SOURCES

Nagarajan

Consultant

35 Points Joined December 2010

Thanks. Is the surrender value is taxable fully incl the premium amount or excluding premium amount paid by me out of my taxable income.

CA Dhanesh Jangid

105 Points Joined March 2012

it will be taxable only if mf are not equity oriented and in that also u have option of claiming indexation and pay tax @ 20% or without indexation pay @ 10%.