8 replies on this article “tax on pension plan surrender”

1. Amit says:

   April 15, 2016 at 7:39 pm

   I had purchased Max life smart invest pension plan on 27-04-2008. Now, Because of some financial requirements, I want to surrender this policy. How much income tax I will have to pay for this surrender value??

   Reply
   1. Manish Chauhan says:

      April 20, 2016 at 4:14 pm

      It will be added to your income , so as per tax slabs you will pay it

      Reply
2. dilip says:

   June 30, 2012 at 10:53 am

   two confusing replies.which is correct?

   Reply
   1. Ashal Jauhari says:

      June 30, 2012 at 11:15 am

      Dear Dilip, In case of Pension plan surrender invites tax. No matter it’s after 5Y or 15Y or 25Y. Rules are very clear for surrender of Pension Plan.

      Thanks

      Ashal

      Reply
      1. dilip says:

         July 2, 2012 at 9:08 pm

         thank you ashal.
         what about jeevan anand?if i surrender the policy ,the amount received is taxable?
         i paid 5 premiums as of now.

         Reply
         1. Ashal Jauhari says:

            July 3, 2012 at 4:13 am

            Dear Dilip, the Jeevan Anand policy is a traditional plan & after completion of 5Y, the surrender ‘ll be tax free. I repeat after completion of 5Y.

            Thanks

            Ashal

            Reply
3. Ashal Jauhari says:

   June 28, 2012 at 9:48 pm

   Dear Dilip, as the plan in question is a pension plan, the surrender amount is taxable. No matter you are surrendering after 4Y or 14 years.

   Thanks

   Ashal

   Reply
4. Manish Chauhan says:

   June 28, 2012 at 8:24 pm

   Yes, if you surrender if before 5 yrs , it will be taxable as per law !

   Reply

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