Tax on ulip - single premium policy

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Suresh Chandra Mannava (Querist)
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27 June 2018 I took LIC Wealth plus T.No 801 (ULIP based) 1,92,000 - single premium paid on march 2010
Sum assured 250000
I have other policies that cover RS 1,00,000 for the year 2009-2010 under section 80C
I didn't claim Rs 1,92,000 under 80C in 2009-2010. It is a tax paid amount.
After surrendering, I got Rs 255000 on august 2017 from LIC. That is, after 7 years of commencement.
1% TDS deducted.
Shall I need to pay tax for the gain alone as I didn't claimed under 80C? or for the whole?
If tax should be paid for whole amount, then I will be ending up paying double tax.

Please provide your opinion on the same.

Ketan Samdani

Ketan Samdani (Expert)
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27 June 2018 Kindly note that the deduction allowable u/s 80C was limited to Rs. 50000/- at the time of payment of premium being 20% of capital sum assures since the payment made before 2012. Now since the premium paid is above 20% of capital sum assured the exemption available u/s 10 (10d) shall lapse and the maturity proceeds shall be taxable.

Suresh Chandra Mannava

Suresh Chandra Mannava (Querist)
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27 June 2018 Thanks for the response.
Shall I need to pay tax on full maturity amount?
Premium paid towards ULIP policy can not be considered as investment?

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