Surrender value on ULIP

Surrender value on ULIP

Hello sir
i have took max life ulip plan on 29 july 2016
my maturity term 10 years
lock in period and premium payment term 5 years.
I have paid all 5 premium but due to low return i have surrendered policy on feb 2021 (5th year of policy). and they are saying i ll get surrendered value with nil charges after july 2021 on completion of 5 years which is right.
But will there be any tax implication on me plz explain as i already complete premium payment terms but surrendered before lock in period. if there is a tax then what can i do to save it. should revive my policy and surrender after lock in period?

Asked 4 years ago in Capital Gains Tax

Dear Sir,

Hope you are doing well !!

If the policy is surrendered after the lock-in-period of 5 years, then the surrender value will be exempt from taxation and assured can avail the tax benefit.

You have completed 5 years, there will be no surrender charge and the surrender value will also be tax free. The surrender value of ULIP is otherwise added to your income and taxed as per applicable slab rate if surrendered before five policy years.