Tax on ULIP proceeds

- As the premium paid was not more than 10% of the sum assured and it is surrendered after 5 years hence no taxation. It is exempt u/s 10 and report the same under exempt income column in ITR.

Hi

Since the policy is surrendered after holding for 5 years, the surrender value is exempt under section 10 of the income tax act. Report the same as exempt income in your ITR 

Hi

As per section 10 (10D) of the income-tax Act, if the sum assured in a life insurance policy is at least 10 times the annual premium, then proceeds from the policy—maturity or early surrender—are tax free, given ULIPs come with a lock-in of 5 years.

As it is exempted income you need to show under exempt income.

Since its a unit linked insurance plan, if its entire amount/ contribution was eligible for 80C and since the premium was below 10% of sum assured I think your entire proceeds would be exempt under section 10.

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