So your ULIP statement just landed and you noticed the annual premium slipped past ₹2.5 lakh.Can anyone please explain here will that come in LTCG as whole??
No worry buddy.Sometimes it happen, here’s the no-jargon, low down on how ULIPs are taxed in 2025
Post-2021 ULIPs (new rules)
• If your total premium across all ULIPs in a financial year is ≤ ₹2.5 lakh → same EEE party as above.
• If > ₹2.5 lakh in any FY → your policy is now treated like an equity MF:
– Hold ≥ 12 months: Long-Term Capital Gains (LTCG) of 12.5 % on gains above ₹1 lakh (effective 1 Apr 2026; until then 10 %).
– Hold < 12 months: Short-Term Capital Gains (STCG) at a flat 20 %.
ULIPs bought before 1 Feb 2021
• Still enjoy pure EEE: Premium paid → 80C deduction, growth → tax-free, maturity → Sec 10(10D) shield.
• Only catch: yearly premium must stay ≤ 10 % of the sum assured (most policies already comply).