Mr. X had invested Rs. 200000 in 2006 in ULIP Policy (LIC) of Market Plus. Now in April 2011 he received (ie. on surrender) Rs. 600000 against it. So What will be the Tax Treatment on surrendering the ULIP Policy (LIC) of Market Plus?
Please guide.
Regards,
Devendra Kulkarni
Kindly refer the below link
https://taxworry.com/be-ready-to-pay-tax-on-surrender-of-ulip-or-pension-plan/
ULIPs have a lock-in period of 5 years. surrender before 5 years attracts income tax and withdrawal of previous tax deductions (if availed). surrender after 5 years is fully tax-free.
if a person is NRI then this amount will be taxable or not?
and under which head?
CAclubindia
