POSTED BY November 11, 2012 11:38 pm COMMENTS (3)ON
My father works in Indian oil Coprporation in 21-OCT-2009 he took a ULIP plan of Tata AIA Life United Ujjwal Bhawishya and its maturity is on 21-OCT-2019 . He paid premium 3 times from 2009- 2011 of Rs. 1,50,000 i.e each year Rs 1,50,000 . Now the premium date is overdue and the fund value is Rs. 1,20,000 so he is not paying the premium knownigly. So I wanted to know what will happen If he doesn’t gives the premium reggularly.
And as his TAX is TDS so can he get any TAX benefit (deduction) for the past 3 years as he has given the premium. If yes than HOW?
And if NO than why.?
Kindly also tell should he continue the policy by paying premium or wait and watch till his Invested Amount becomes FOUR digit.
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3 replies on this article “Tax Gyan”
Dear Radhey, as your father is working in IOCL, he is already exhausting the full 1L Rs. limit of 80C investments by way of his PF, PPF & other insurance policies. So he can not earn any more tax benefit from this prem.
Regarding the policy in question, after paying 4.5L Rs. having a fund value of 1.2L Rs. surely it has made the agent’s Bhavishya Ujjawal not your or your father’s. 🙂
Please update us, what your father has done this year for prem.?
If he is affordable for a long term savings , he can continue the ULIP for a return of 10% – 12% in 10 or 15 years.If he is stoping , then better to come out in short term ,As for as Tax part is concerned , i believe there will be no TDS Levied on the Surrender , But it has to be shown in the income – than it will be taxable.For the past three years for paying premium you can claim Tax benefit for that respective years.
He can stop the premium payment not an issue , it will still be ok . He must have used the tax benefit anyways for all those years when he paid the premiums right ?