tax on partial withdrawl from Life Insurance ULIP

Amit91 196
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Dear Pankaj

I had taken Icici prudential life time plan in 2003 (Life Insurance, ULIP). Its lock-in period was three years. I did a partial withdrawl (around 90% of net value) in 2010 and paid the money towards my second home loan.

Is this partial withdraw (after the lock-in period) from life insurance (ULIP) taxable in my hand?

Please advise.

I really appreciate that you take some time out from your schedule and answers the questions of people for free and with proper sections mentioned. It indeed increases our knowledge and confidence.

Thanks.

surrender-value ulip income-tax life-insurance
1 Answers

As you withdrew amount after completion of five years, no income tax is payable either on principal or gains in case of a ULIP policy.

Pankaj Batra5212
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