I have purchased ULIP policy from max life Insurance
Details:
Date of Policy - 21/10/2009
Plan - Max Life Life Maker Premium Unit Linked Investment Plan
Sum Assured (Rs.) : 100000
Premium - 20000 Annual
premium payment term - 5 years
last premium paid - 20000 on 08/11/2013
maturity date - 20/10/2019
my query - if i surrender this policy today, whether the proceeds will be taxable or not?
is TDS applicable on surrender value
considering the fact that the policy is issued before 01/04/2012 and sum assured is five times the annual premium
as per my knowledge
Receipts are tax free in case of:
- policies issued up to 31.03.2003
- policies issued between 01.04.2003 to 31.03.2012 if sum assured is more than five times the annual premium
- policies issued from 01.04.2012 and onwards if sum assured is more than 10 times the annual premium
Pls guide me.
2 Answers
Hi,
The Surrender value of the ULIP is completely tax-free under 10(10D) if FIVE policy premiums are paid.
TDS would be deducted only if the amount is more than Rs 1 Lakh.
Hi,
I have noticed that you have posted a 'follow on query' as a separate thread. I have deleted that question and posted the same here
Your reply:
Thanks Shreekant for your prompt reply
in my case amount is more than 1 lakh
but since it is not taxable as you mentioned, will TDS be still applicable? Ans : No, TDS won't be applicable.
in my case amount is more than 1 lakh
but since it is not taxable as you mentioned, will TDS be still applicable? Ans : No, TDS won't be applicable.
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