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Ramalingam Kalirajan6275 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on Aug 13, 2024
Asked on - Aug 02, 2024Hindi
I have running ULIP Insurance policy bought in 2008. Premium 4 Lks. Assured sum 52 Lks and is still active. I shall very grateful to you if could clarify my below queries in "IT terms"
1. a. What is the tax implication, if a partial withdrawal if done now ?
b. If no TDS is deducted, will the withdrawal amount be treated as an earning, or the purpose of tax filing?
2. a. As the ULIP policy was done in 2008, What will be the tax implication, in case of, surrender of the policy now?
b. If no TDS is deducted on the surrender amount, will the surrender value be treated as an earning, for the purpose of tax filing.
Ans: Partial Withdrawal Tax Implications
Partial Withdrawal - Tax Implication Now:
Since your ULIP was bought before 2010, the partial withdrawal is tax-free if the premium does not exceed 10% of the sum assured (Rs 5.2 lakhs in your case).
No TDS Deducted - Treatment for Tax Filing:
If no TDS is deducted, the withdrawal is still tax-free and does not need to be treated as taxable income.
Surrender Tax Implications
Surrender of Policy - Tax Implication Now:
If you surrender the ULIP, the maturity proceeds are tax-free, as your policy was purchased in 2008, provided the premium does not exceed 10% of the sum assured.
No TDS Deducted on Surrender - Treatment for Tax Filing:
If no TDS is deducted, the surrender value is still tax-free and does not need to be reported as taxable income.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Partial Withdrawal - Tax Implication Now:
Since your ULIP was bought before 2010, the partial withdrawal is tax-free if the premium does not exceed 10% of the sum assured (Rs 5.2 lakhs in your case).
No TDS Deducted - Treatment for Tax Filing:
If no TDS is deducted, the withdrawal is still tax-free and does not need to be treated as taxable income.
Surrender Tax Implications
Surrender of Policy - Tax Implication Now:
If you surrender the ULIP, the maturity proceeds are tax-free, as your policy was purchased in 2008, provided the premium does not exceed 10% of the sum assured.
No TDS Deducted on Surrender - Treatment for Tax Filing:
If no TDS is deducted, the surrender value is still tax-free and does not need to be reported as taxable income.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Asked on - Aug 14, 2024 | Answered on Aug 14, 2024
Thank you very much for your response
Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in