Money from surrendered LIC Policy

POSTED BY Arudra Kumar ON February 7, 2011 12:34 pm COMMENTS (4)

Is the money we get from surrendering a LIC policy taxable?

Regards,
Arudra.

4 replies on this article “Money from surrendered LIC Policy”

  1. pvivekm says:

    I presume this applies to partial withdrawals also. Please correct me if it is not so.
    Thanks,
    -VIvek

  2. Arudra Kumar says:

    Thanks, Manish for that detailed answer. I never thought that the tax benefits would also be reversed.

    Regards,
    Arudra.

  3. Arudra

    thanks for asking wonderful questions ..

    LIC policies or any other companies Endowment and moneyback , as well as ULIPs have common rule on this.

    If you get your money after 5 yrs : NO TAX

    If you get your money before 5 yrs : then that money gets added to your income and taxed as per your slab , also the tax beneits you have got in earliar years are REVERSED

    Manish

  4. Anand says:

    As per current tax laws, no.
    Not sure after DTC.

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