6 replies on this article “Surrender of Policy”

1. ashal jauhari says:

   February 21, 2012 at 11:43 pm

   Dear Sanjay, for ULIPs the lock-in period is 3Y where as for traditional policies it’s 5Y & here in the original query, the policy in question is Jeevan Saral, which falls in traditional category & that’s why I said for 5Y term.

   Thanks

   Ashal

   Reply
2. SANJAY KUMAR says:

   February 21, 2012 at 7:16 pm

   Dear Ashal

   The tenure is 5 yrs or 3 yrs??

   Regds

   Sanjay

   Reply
3. Avanti says:

   November 26, 2011 at 2:38 pm

   Thanks Again

   Reply
4. ashal jauhari says:

   November 26, 2011 at 1:50 pm

   Dear Avanti, if you opt to surrender the policy after completing the 5 policy years, the surrender amount ‘ll become tax free & also the tax saved in prev. years ‘ll not be revert back.

   Thanks

   Ashal

   Reply
5. Avanti says:

   November 26, 2011 at 1:03 pm

   Mr. Ashal

   thanks for u r valuable information.

   Plz can u tell me If I surrender this Policy after 5 yrs. then tax benefit under this policy will be applicable?

   Regards,
   Avanti

   Reply
6. ashal jauhari says:

   November 25, 2011 at 12:02 am

   Dear Avanti, Please do note, in case you are surrendering the policy before completing the 5Y holding period, not only the surrender amount ‘ll become taxable but the income tax saved in prev. year ‘ll also become tax liability in the year of surrender.

   For your basic query, yes you may claim tax benefit on your policy for the current FY also. But do remember, the tax saved in current Fy as well as in prev. 3 Fy,. ‘ll become payable next FY when you ‘ll surrender your policy.

   Thanks

   Ashal

   Reply

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