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I have been regularly paying premium of Rs. 25000/- for my insurance HDFC ULIP policy, starting from the year May 2007 on an yearly basis. I had surrendered the said policy on 30.03.2011 and the total amount received as about Rs. 95000/-. I had claimed the tax rebate of the above premium under section 80 C till last year. Please let me know the tax amount I need to pay on the receipt of the above Rs. 95000/-.
If you surrender your policy between 3-5 years (depending on the type I or II), then entire surrender value gets added to your income in the year of receipt (in this case, you can withdraw 99% of the fund value). If you terminate the contract of insurance , your 80C deductions claimed in the past years is taxed as Income from other sources. Income Tax Provisions Link
Vivek - How do I know that my ULIP is Type I or Type II?Quote:
Originally Posted by Vivek
Read your policy bond.Quote:
Originally Posted by nishant
Type 1 ULIP
Type 1 ULIP the policy holder will receive either insurance and investment benefit not both. At the end of term (maturity period) policy holder will get benefits from either investment or the insurance section of the ULIP, which ever is higher.
Type 2 ULIP
This is same as Type 1 ULIP except, in this plan the policy holder get both benefits i.e benefits from insurance section and investment section of ULIP. But you need to pay higher premium for this plan.
More Info Read Here - Link