Paragraph match score 78.9%
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Did You Know?
If your combined premium exceeds ₹2.5 lakh, the maturity proceeds are taxable as capital gains at the rate of 12.5% for long-term holdings and 20% for short-term ones.
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ULIP Tax Benefits
The tax treatment of ULIP maturity proceeds depends on the date of policy issuance and the premium amount. For ULIP policies issued before 1 February 2021, the maturity proceeds are generally tax-exempt under Section 10(10D) , irrespective of the premium amount. However, for ULIPs issued on or after 1 February 2021, the maturity amount may be taxable under the head “Capital Gains” if the aggregate annual premium exceeds ₹2.5 lakh, as per prevailing tax provisions.