I would like to know the Tax Benefits of ULIP Plans and implications in the following cases:
- If a ULIP PLAN is closed before the lock-in period and money is withdrawn?
- If a ULIP PLAN is closed after lock-in period and money withdrawn?
- The money is received back by the investor on the maturity of the plan?
- If the money received is more by Rs.one lac or more, than the money invested in the plan at the end of maturity is TDS deducted? (Say investment Rs.5 lacs over the term of the plan and money received is say Rs.7 lacs whether TDS will be deducted on Rs.2 lacs or on Rs.7 lacs or not at all)
- If the ULIP Plan closed before 5 years, then the tax benefits you availed earlier will be reversed. Also, the surrender proceeds will be considered as taxable income.
- It is tax-free.
- Tax Free.
- There are some rule to the ratio of premium:Sum Assured. I explained the same in below blog post. Please go through it.