My ULIPs and Pension Plan Taxation - advice needed kindly

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harikc_hyd asked 8 years ago

Hi srikanth, Can you clarify me about the taxation part of my policies.

Bajaj Allianz Equity Growth Fund

Policy Taken date : 2009 Surrended Date: 2017 Premium amt : 50,000 Surrender Value : 94,000 Sum Assured : Not there TDS : Not Deducted 80C : Not Availed by me My view on this : as i completed more than 5 years my surrender value is totally exempt means i need to put surrender value 94,000 under Exempt column or do i need to mention only profit that is ( 94000-50000) = 44000 under exemption column. Company told this is a ULIP plan. 2) ICICI Life Stage Pension Policy Taken date : 2009 Surrended Date: 2017 Premium amt : 1,60,000 Surrender Value : 2,30,000 Sum Assured : Not there TDS : Not Deducted 80C : Availed by me My view on this : It is a pension plan and i paid more than 5 years and taken 80c and not taken any annuity on surrender so it is exempted competely under 10 (10A) . Please tell me do i need to put entire 2,30,000 in Exemption column or only profit that is 230000-160000 = 70000 ) as exempted income. Please kindly give me your views and suggestions on my taxation part and how to proceed ...its a kind request. Thanking you, Hari .

1 Answers

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Sreekanth Staff answered 8 years ago

Dear Hari, 1 - The ULIP maturity/entire surrender money can be shown under Schedule of Exempt Income or EI in the income tax return. 2 - The tax treatment of Pension plan is different to Traditional life insurance plans / ULIPs plans. In case of PENSION plans, if you surrender before maturity, the entire surrender value is taxable at your current income tax bracket rate. You would also have to reverse all the tax benefits that you received under Section 80C of the Income Tax Act. Related articles ;