Tax option of receiving funds from SBI Life Insurance (ULIP)

Hello Everyone,

I want to seek your help.

I had invested in SBI ULIP 10 years ago and I stopped paying the premium after the lock-in period.

since the ULIP is closed and the funds are divested. The bank is returning the funds with profit.

I paid the premium from the SBI NRE account which is now closed.

I also have an Axis NRE bank account and an NRO account. However, I have asked the bank to return the funds to the NRE account.

Will there be any taxing issue if I get it in the NRO account? I mean do i have to pay additional tax? 

what kind of tax option will it fall into?

do I have to pay TDS or the Axis Bank will pay?

Replies (1)

mostly it should be tax exempt. However, check this article to be sure as a lot of details go into determining taxability of such transactions these days! https://www.adityabirlacapital.com/abc-of-money/know-about-tax-in-case-you-surrender-life-insurance-policy

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