I bought Unit Plus-II in 2008 with a single premium. I want to surrender the policy before maturity, how much tax will I have to pay?
- Asim Kumar Mukhopadhyay
It seems, you are referring to is SBI Unit Plus-II Pension Plan. This is a Unit Linked Pension Plan (ULPP). The surrender value will be taxed as income in the year of receipt. This means the proceeds will be added to your income and taxed according to the income tax slab applicable to you.
There is no surrender penalty from the 6th policy year, irrespective of the number of years the premiums have been paid. The surrender value for single premium income sustainer rider is: Single Premium (exclusive of Service Tax) x 75% x Outstanding Term to Maturity / Total Term.