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Insurance Surrender Value After lock-in period is Taxable or not

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Maddan R Saawant

29 Points Posted on 08 April 2024

Hi Everyone,

I recently surrendered insurance policies and would like to know if the value is taxable or not.

I read somewhere that it's not taxable. if it's true then do we need to add in the Schedule of Exempted income in ITR?

Appreciate your help here.

Thanks

Maddan

Replies (3)

Quick Summary

This discussion explores whether the surrender value of insurance policies, particularly ULIPs held for over five years, is subject to taxation. The original poster inquired about taxability and the need to declare it as exempted income in their ITR. A link to an article was provided for further clarification, and the user reiterated their query regarding funds received in an NRE account.

Nikhil Kaushik

Fellow CA

70840 Points Posted on 08 April 2024

not sufficient information. this article may help you decide better: https://www.adityabirlacapital.com/abc-of-money/know-about-tax-in-case-you-surrender-life-insurance-policy

Maddan R Saawant

29 Points Posted on 09 April 2024

Hi Nikhil

I surrendered insurance and the surrender funds came to my nre account. I held that ulip for more than 5 years. What is the tax liability in such case?

Do I need to pay tax or not?

If I don't have to pay tax then do I need to include in ITR filing?

Thanks

Maddan

Maddan R Saawant

29 Points Posted on 09 April 2024

Hi Nikhil

I surrendered insurance and the surrender funds came to my nre account. I held that ulip for more than 5 years. What is the tax liability in such case?

Do I need to pay tax or not?

If I don't have to pay tax then do I need to include in ITR filing?

Thanks

Maddan