Other question i have: If I am the Policyholder/Proposer of a ULIP policy and my 6 years kids being the Insured(Life Assured), after 20 years at Maturity my kids would be Major. At that time the Maturity payout goes to me or my kids(who will be major then)?
Thank you
Hi @10r10usa,
This needs to be confirmed from the policy provider.
With regard to taxation, the one who receives the maturity amount will be liable to pay the tax.
Thank you @Surbhi_Pal
To combine my 2 questions together.
If I as a policyholder pay for 2 policies 2.5lakh per year premium for 5 years for my son and daughter who are minor(6 years old). And when they turn major the policy is transferred to them and they become the policyholder. And when the policy matures each will receive there own maturity payout. So in that case who is tax exempt and who will pay the tax? @CA_Niyati_Mistry
Thank you
Hi,
Ideally any one of them could claim the exemption. There’s still a little ambiguity as to what if happen if they become the policy holders. This will also depend on whether your kids would be paying any premium after they become the policy holders.
Hey @Surbhi_Pal ,
I would be paying all the premiums for next 5 years(they are 6 now), so no they wont be paying any premium.
At maturity payout tax filing year how would ITD know that one has claimed procceds under 10(10D) and other has not?
Or how would they know if both of them claim the proceeds tax free under 10(10D)?
Thank you.
I was issued Guranteed Money back policy in June 2012.
I had paid 5 year Premiums (fully paid up) but i surrendered policy in year 2018 before maturity.
Is surrender value tax free in the above scenario or i have to pay the taxes ?