PARTHASARATHY (RETIRED) 30 June 2015

Ulip pre closure and tax effect

Paid Rs.200000/- to SBI life Insurance unit linked pension cum life insurance u/s 80CC @ Rs.50000/- pa from 2007 to 2010.Now through pre closure got Rs.322054/- in May 2015 after detecting TDS, etc.Kindly let me know whther this amount is exempted from TAX.

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5 Replies

Kumar Doab (FIN) 30 June 2015

Section 194DA: TDS at the time of surrender on the entire sum received, at 2 per cent (if PAN is registered) or 20 per cent (if PAN is not registered).

Write to insurer and get a written reply. They should be happy to supply a reply, if they have not attached a detailed explanation of amount disbursed and applicable TDS.

PARTHASARATHY (RETIRED) 01 July 2015

Thanks for the reply. I would like to inform that the TDS of Rs.6573/- @ of 2% dedected by sbi life. I would like to know the amount received Rs.322054/- is exempted from taxable income?

Kumar Doab (FIN) 01 July 2015

Surrender of ULIP before 5 years is subjected to tax treatment.

This plateform is for legal queries.

You can post your query at sister website of LCI:

www.CAclubindia.com

or consult your CA, I.Tax Lawyer in person.

Mimi Banerjee 01 July 2015

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Mimi Banerjee 01 July 2015

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