I have purchase Life Maker Premium Unit Linked Investment Plan form Max NewYork Life Insurance in the month of Feb. 2008. The sum assured was Rs. 150000/- and the annual premium was Rs. 20000/- paid quarterly Rs. 5000/-.
I have surrendered the said policy on Sept. 12, so what will be the tax implication for the AY.2013-14
Whether I have to pay the income tax on the surrender amount or is it exempted?
ULIP is not a good investment. It is a way to make more money for the insurance co.
In your case, since you have surrendered before the end of 5 years, the deduction you have availed u/s 80C each year for insurance premium paid, will now become taxable.
the chapter VI part has been covered by Mihir. there is an additional issue. You need to check the short term capital gains and long term capital gains tax implications.
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