Tax on ULIP surrender money
This query is : Resolved
Rakesh R N
(Querist)
19 August 2024
I have ICICI PRU life time ULIP taken in year 2005 (with 2078 as policy end year), with 50,000 rupees as yearly premium and 5 Lakh rupees as life cover and 3 Lakh rupees as accident & disability cover.
Some amount is withdrawn from policy in years 2009, 2014, due to which life cover is reduced to 1.8 Lakh rupees but 3 Lakh rupees as accident & disability cover still exists.
Can I consider the total sum assured as 8 Lakh rupees before withdrawals and as 4.8 lakh rupees after withdrawals.?
What are the taxes to be paid if I surrender the policy now and get the current fund value.?
Does it qualify for section 10-10 (D), where in, Tax need not be paid.?
As per my understanding, Section 10-10 (D) qualification rule for the ULIP issued on or after 1st
April 2003 but on or before 31st March 2012 is: The premium payable should not exceed 20% of the actual capital sum assured, for any of the years (during the term of the policy).
Is this rule met.? Let me know if I am missing anything. Thanks.
Some amount is withdrawn from policy in years 2009, 2014, due to which life cover is reduced to 1.8 Lakh rupees but 3 Lakh rupees as accident & disability cover still exists.
Can I consider the total sum assured as 8 Lakh rupees before withdrawals and as 4.8 lakh rupees after withdrawals.?
What are the taxes to be paid if I surrender the policy now and get the current fund value.?
Does it qualify for section 10-10 (D), where in, Tax need not be paid.?
As per my understanding, Section 10-10 (D) qualification rule for the ULIP issued on or after 1st
April 2003 but on or before 31st March 2012 is: The premium payable should not exceed 20% of the actual capital sum assured, for any of the years (during the term of the policy).
Is this rule met.? Let me know if I am missing anything. Thanks.
12 August 2025
https://docs.google.com/document/d/1pZAddppO3XhezEClRIKyRq_ymjRRe5IsFJqJNUtEdik/edit?usp=sharing
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