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

1. pvivekm says:

   February 22, 2011 at 3:56 pm

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

   Reply
2. Arudra Kumar says:

   February 7, 2011 at 5:20 pm

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

   Regards,
   Arudra.

   Reply
3. Manish Chauhan says:

   February 7, 2011 at 4:56 pm

   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

   Reply
4. Anand says:

   February 7, 2011 at 4:48 pm

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

   Reply

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