4 replies on this article “Tax implications on ULIP surrender”

1. Ela Selvaraj says:

   April 29, 2015 at 7:27 pm

   Dear Ashal,

   I am in need of some clarification here. I am an NRI, Invested in ICICI Prudential ULIPS. The premium amount is 3.0 lakhs per year for next 5 years. The sum assured is 10 times the annual premium which 30 lakhs. I am not planning to withdraw until its mature in 10 years time. After maturity (in my case 10 year policy term), whether the maturity amount is taxable? I read it all over the forum and I understand that the maturity amount is tax-free whatever the NAV value is. But to be sure I emailed the ICICI Prudential to know the details, the reply was shocking…

   “Dear Sir,

   We hereby inform you that as per new tax laws, if the customer is Non Resident of India (NRI) the income tax applicable on his Income which is mentioned below :

   If Net Income = 1 crore, then the applicable rate is 33.99%.”

   I am surprised from the above reply and worried of huge tax payment on my returns. Please from your side, clarify the above query.

   Thanks
   Ela

   Reply
2. Ashal Jauhari says:

   May 27, 2013 at 6:20 pm

   Dear Ramprasad, as you have completed the basic 3Y holding period, the amount to you is tax free.

   thanks

   Ashal

   Reply
3. Ramprasad says:

   May 27, 2013 at 4:43 pm

   HI Ahsal,
   Thanks, Sum assured was 7.5 lakhs and premimum years were 20.
   So if I surrender, it is not taxable? then when is it taxable?

   Ramprasad

   Reply
4. Ashal Jauhari says:

   May 27, 2013 at 3:27 pm

   Dear Ramprasad, the surrender amount ‘ll be tax free if your sum assured is more than 3.75L Rs.

   Thanks

   Ashal

   Reply

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