Sir, I have an “ICICI Pru Life Time Super Pension” policy running from last 9 years and having some questions in that , request you to please reply me on urgent basis.
- ICICI advisor told me some days back that any policy having word as “pension” is taxable. Please confirm if it is correct.
- Till date I have invested 1.1 Lac and Fund value is 1.8 Lac. So ICICI advisor is telling that you have to pay TAX on whole amount which is 1.8 Lac.Please let me know if he is saying correct.
- He has advised me to surrender that policy and take ICICI wealth builder plan on 48k yearly at least and only in this case you can save TAX.
My main question is point number 2 above as I have to pay tax on whole amount or on difference.
Please help me on this as 1 day back I submitted documents to switch my funds and still confused as what to do.
Kindly guide as what is better action I should take at this time.
Thanks in advance.
Thanks a lot Sir,I was never expecting such a quick response.Just to recheck As agent told that if currently you are paying TAX of suppose 7 Lac yearly and after withdrawing this amount before or on maturity is suppose 1.8 Lac then next year you have to file ITR of Rupess 7+1.8 = on 8.8 Lac. This what he was saying Taxable.Please help me on this as he is advising right or wrong and from where else i can confirm this because all ICICI are forcing on New Policy. I just want your 2 minutes to reply so that i can be sure. Thanks a lot Sir
Hello Sir Request you to please guide on my above comments
20 Views 1 Answer , Please answer and help me..
He is a BIGGEST lier whose main aim is not about your investment, but to make you surrender an existing plan and sell one new plan to complete his target.
In your case you completed 5 years in ULIP. Hence, it is not taxable. Also, the product you are investing is WORST and also the the product your agent suggesting.
I already replied, as per my knowledge he is eager to sell one more plan by surrendering the existing product in the name of TAX. As per me, it is tax-free.
Thanks Sir. But here at below link it states something different for Pension Policy.
Case B: Surrendering the policy before maturity
Surrendering the pension plan before maturity has serious tax implications. First of all, the premiums that you have claimed as part of deduction under section 80C will be reversed and you will have to pay tax on it. Secondly, the entire surrender value will be added to your income and you will have to pay tax on it according to your tax slab. According to latest rules of IRDA, 2/3rd of the surrender value received should be used to purchase annuity plan.
Case C: Upon maturity
The maturity proceeds under pension plans are tax free up to 1/3rd of the amount. Rest 2/3rd of the maturity amount needs to be used to purchase annuity plans as specified by IRDA.
But your plan is considered as ULIP. Is there any clause in your policy document which says’ According to latest rules of IRDA, 2/3rd of the surrender value received should be used to purchase annuity plan.” In my view NO. Because your plan is considered as ULIP.
Check your policy document and let me know.