POSTED BY April 3, 2013 9:41 pm COMMENTS (3)
ONI have an ICICI LifeTime Super Pension ULIP which I started in Dec 2007. I have made some switches in the ULIP (between maximizer, balancer and protector schemes) over the years and last week I made a 100% switch to the ‘Pension Protector Fund II’. If I were to redeem the entire units in the policy now (Or say one year from now if that makes any difference), how much tax would I need to pay? I basically need to know if there will be different taxation rules applied given the fact that 100% of the money is now allocated to debt instruments in the ULIP policy.
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Dear PG, in case of surrender of ULPP (unit linked pension plan), surrender amount is taxable in the year of surrender. No matter you had availed section 80C benefit or not.
Thanks
Ashal
Hello,
Can you please let me know how tax is to be computed on ULIP pension plan which was surrendered after 5 years and on which premium was paid for 3 years. No tax benefit was availed for the 3 premiums paid.
It would be helpful if you could also let me know the applicable Income tax section.
Thank you for your valuable time,
Best regards,
PG
Dear Abhilash, as the policy in question is a pension plan, no matter from which fund you redeem, it ‘ll always remain taxable for surrender.
Thanks
Ashal