Taxation of redemption of ULIP after lock-in-period of 5 years

This discussion clarifies the taxation of Unit Linked Insurance Plans (ULIPs) redeemed after the initial 5-year lock-in period but before the policy term ends. It addresses whether capital gains are taxable and if indexation benefits apply. The consensus is that ULIPs issued before 1st February 2021 may be subject to long-term capital gains tax upon redemption after 5 years, as Section 10(10D) exemption might not apply in such scenarios.