Surrendering a ULIP after 5 years | Value Research The entire surrender proceeds acquired from a ULIP is added to your annual income & taxed accordingly
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Surrendering a ULIP after 5 years

The entire surrender proceeds acquired from a ULIP is added to your annual income & taxed accordingly

I bought ICICI Pru LifeStage Pension Advantage, a ULIP policy, on March 2010. I paid an annual premium of ₹50,000 for three years. As five years have completed, I wish to surrender my policy. I want to know whether my surrender value will attract service tax and TDS. My fund value at present is ₹2.17 lakh. How much will be my tax outgo?
- Senthil

If you surrender your policy now, you will receive at least 90% of your fund value. The entire surrender value will be added to your annual income and taxed as per your tax slab. In the case of Unit Linked Pension Plans, insurers do not deduct tax at their end. Service tax is collected by the insurance company when an investor pays the premium. It will not be charged while surrendering the policy.


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