Surrender of ULIP pension policy

My wife had a ULIP Pension Policy with HDFC for which she was paying Rs.50,000 annual premium since 2010. She paid five premiums of 50,000 each till 2014. In 2015 she surrendered the policy for a surrender value of Rs.3,17,199

For the five yars she claimed Rs.50,000 deduction under 80CCC 

What is the tax implication for this year. Does she need to pay tax on the whole amount or just the gains.
Asked 7 months ago in Income Tax from Mumbai, Maharashtra
ULIP must be kept in force for 5 years to claim deduction – The premiums must be paid regularly and the ULIP must be continued to avail tax benefits. In case you discontinue your ULIP before 5 years, you will not be allowed any tax benefits. Any deduction allowed in the previous years shall get added back to your income in the year in which ULIP is closed.

No tax if redeemed after 5 years.
Shyam Sunder Modani
CA, Hyderabad
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Dear Sir,

Where any amount standing to the credit of the assessee in a pension fund  is received by the assessee or his nominee—
 (a) on account of the surrender of the annuity plan whether in whole or in part, in any previous year; or
 (b)....

shall be deemed to be the income of the assessee or his nominee, as the case may be, in that previous year in which such withdrawal is made .

Hence, the amount is taxable in the hands of your wife.

Please feel free to call/revert in case of any doubts 

Thanks and Regards
Abhishek Dugar
CA, CS, B.Com
Caabhishekdugar@gmail.com

Abhishek Dugar
CA, Mumbai
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Hi Yes you are right. The amount in pension schemes are taxable.
Shyam Sunder Modani
CA, Hyderabad
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Hello Sir,

If it is a Pension Ulip then the said amount shall be taxable.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
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