ULIPs are considered as life insurance policies with respect to taxation, but UTI ULIP is an exception
03-Aug-2016 •Research Desk
In September 2015, I redeemed the maturity amount for my UTI ULIP 15 year plan. This was started on June 2000. The premium amount was ₹. 1500 (Half yearly) and the maturity amount mentioned was ₹. 45,000. Do I need to mention the ULIP maturity amount in my IT returns this year If yes, which section? Is the maturity amount taxable If yes, is it same as my slab rate ?
UTI ULIP is taxed like any other non-equity fund. Your maturity amount will not be taxed as per you slab rate. You will have to pay long term capital gains tax of 20% with indexation, since your holding period is greater than 3 years. You have to mention the maturity in schedule CG (part B, Point 7) of ITR-2 .