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

465 views 3 replies

Maddan R Saawant

33 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)

Nikhil Kaushik

Fellow CA

86881 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

33 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

33 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