TDS on surrendering ULIP | Value Research Since the sum assured is more than five times the annual premium, there won't be any TDS
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TDS on surrendering ULIP

Since the sum assured is more than five times the annual premium, there won't be any TDS

13-Oct-2015 •Research Desk

I have two Unit Linked Insurance Plans (ULIPs), one each from ICICI Prudential Life Insurance and and Birla Sun Life Insurance. I pay an annual premium of ₹1 lakh on each of them. The sum assured is ₹5 lakh. I have taken the policy in May 2010 and paid five instalments. I want to redeem the policies now. I am a housewife with a PAN card and no taxable income. What will be TDS?
- Nirupama Panda

No TDS will be deducted from you as the sum assured under your policy is five times the annual premium. Read more on taxation of insurance policies here: Taxation on insurance products.

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