Is surrender value received from LIC taxable under Sec 10(10D) ?

POSTED BY wahiemukesh ON October 1, 2013 9:44 pm COMMENTS (4)

This is with regard to our recent correspondence on standing up a policy. I surrendered it and received payment from LIC on my own policy (policy taken before 2011-12, premium < 10% of SA). Is it taxable under Sec 10(10D)?

4 replies on this article “Is surrender value received from LIC taxable under Sec 10(10D) ?”

  1. ashalanshu says:

    Dear Mukesh, as you surrednered after completing at least 5Y in traditional policy, the surrender amount is non taxable.

    Thanks

    Ashal

  2. wahiemukesh says:

    Dear Ashal

    This was a 16-year endowment policy, of which I paid for 8 years. On surrender, I received Rs 30,000 less than the premiums paid.

  3. Mustafizur Rahaman says:

    Dear Ashal,

    I am planning to surrender couple of ULIP & couple of traditional plan like Jeevan Saral & forgot the other name. What is the tax implication here?

  4. ashalanshu says:

    Dear Mukesh, how many years old was this policy? Was this a traditional plan or ULIP?

    Thanks

    Ashal

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