Ask Value Research

Tax liability on ULIPs

The entire surrender value from Unit Linked Pension Plans (ULIPs) would be added to the annual income

I had purchased LIC Future Plus policy as a onetime investment of ₹50,000. It was to mature in 2017. However, I have surrendered it in August 2015. Will there be any tax liability? How do I calculate it?
- Vinod kumar

The entire surrender value from Unit Linked Pension Plans (ULIPs) would be added to the annual income of the policyholder and taxed as per the applicable tax slab. The tax exemptions availed on the premiums paid till date also has to be paid back. Add the surrender value to your income to calculate your tax liability as per the applicable tax slabs.

This article was originally published on September 15, 2015.

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