I have been holding a unit-linked plan for quite some time now. Now, I need to withdraw some funds from my corpus. Will the amount thus withdrawn be taxable?
Suparna Ghosh, Bagdogra
The taxability of the partial withdrawal from the Ulip corpus will depend on the period for which the contribution to the scheme has been made. The amount of partial withdrawal from Ulip is exempt under Section 10 if the contribution towards the Ulip is made for five years or more. However, if the withdrawal takes place before the completion of five years of contribution, even the deduction claimed during the earlier years will be revoked and all deductions pertaining to previous years put together will be added to the income of the year during which the policy is cancelled or surrendered.
