February 7, 2011 12:34 pm
Is the money we get from surrendering a LIC policy taxable?
I presume this applies to partial withdrawals also. Please correct me if it is not so.
Thanks, Manish for that detailed answer. I never thought that the tax benefits would also be reversed.
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
As per current tax laws, no.
Not sure after DTC.
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