HDFC ULIP POLICY SURRENDER VALUE TAXABLE OR NOT

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This discussion clarifies the tax implications of surrendering an HDFC SL ProGrowth Flex Plan ULIP. If surrendered within the five-year lock-in period, any gains are taxable. However, if the policy is surrendered after the five-year lock-in, the gains are generally tax-free, provided premiums were not claimed under Section 80C.

G.GOVINDARAJAN

G.GOVINDARAJAN (Querist)
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16 November 2023 Premium amount of Rs.95000 paid to HDFC SL ProGrowth Flex Plan for five years. Sum assured is Rs.38,00,000 after 10 years. If the Policy is surrendered after 5 years lock-in-period, what will be the tax effect on the excess amount received? The premium amount of Rs.95000 is not claimed deduction u/s.80C in the previous years.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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15 January 2024 If surrendered within five years, gains are taxable. The gains become tax-free if you stay invested for more than five years. ULIPs are unique in nature, providing a blend of financial protection and investment potential while offering you tax benefits based on the duration of your investment.

G.GOVINDARAJAN

G.GOVINDARAJAN (Querist)
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18 January 2024 THANK YOU VERY MUCH ...

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