Surrender value taxable or not?

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Chintan (Querist)
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26 March 2012 I have two lic policies out of which one is money back plan and the other is market linked plan. I want to know if surrender those policies then is the surrender value taxable?

I also have three ULIPS. whether the surrender value of ULIPS is taxable or not?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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26 March 2012 No it is not taxable, Surrender value is exempt u/s 10(10D).

Chintan

Chintan (Querist)
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27 March 2012 Sir but when I inquired in the customer care centre of one of the ulips they said that if you terminate the policy in between then the amount received will be taxable. the amount that you get after maturity is tax free.

I want to terminate the policy in between but I am confused whether the proceeds will be taxable or not? Please explain.