Are my maturity proceeds from ULIP Taxable?

Income Tax Income from Capital Gains
26

Hey @AG_125,

  1. There is a combined limit on LTCG. If there is any LTCG from sale of listed equity shares or ELSS or Equity based MF or ULIP there is exemption upto ₹1 Lakh.
  2. The difference between the sales consideration received and the amount of investment done in ELSS is considered Capital gains and taxed. Any income received during the period of holding by way of dividend then it is taxed as Other Source Income. The amount shall be total dividend without reducing the TDS deducted.
  3. As mentioned by you, the limit under 80C is already exhausted by investing in PPF and insurance, you won’t get any additional benefit under 80C with respect to ELSS or ULIP.
  4. The taxation will be same, it will be considered as LTCG with exemption upto ₹1 Lakh.
  5. No, any income received during the period you hold ELSS or ULIP is taxable under Other Source Income and at the time of redeeming the units they are taxed as LTCG.

You can read more on ELSS Mutual Fund and ULIP Taxation

Hope this helps!

1 Like