My wife had a ULIP Pension Policy with HDFC for which she was paying Rs.50,000 annual premium since 2010. She paid five premiums of 50,000 each till 2014. In 2015 she surrendered the policy for a surrender value of Rs.3,17,199 For the five yars she claimed Rs.50,000 deduction under 80CCC What is the tax implication for this year. Does she need to pay tax on the whole amount or just the gains.
ULIP must be kept in force for 5 years to claim deduction – The premiums must be paid regularly and the ULIP must be continued to avail tax benefits. In case you discontinue your ULIP before 5 years, you will not be allowed any tax benefits. Any deduction allowed in the previous years shall get added back to your income in the year in which ULIP is closed.
No tax if redeemed after 5 years.
Hi Shyam My question does not deal with life insurance ulip but with pension ulip As far as I understand surrender of these is taxable regardless of five years.Please clarify the same
Hi Shyam My question does not deal with life insurance ulip but with pension ulip As far as I understand surrender of these is taxable regardless of five years.Please clarify the same
Dear Sir,
Where any amount standing to the credit of the assessee in a pension fund is received by the assessee or his nominee—
(a) on account of the surrender of the annuity plan whether in whole or in part, in any previous year; or
(b)....
shall be deemed to be the income of the assessee or his nominee, as the case may be, in that previous year in which such withdrawal is made .
Hence, the amount is taxable in the hands of your wife.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA, CS, B.Com
Hi Yes you are right. The amount in pension schemes are taxable.
Hello Sir,
If it is a Pension Ulip then the said amount shall be taxable.
Trust this clarifies your query.
Feel free to call back/ get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
