ULIP Income Reporting for AY 2026-27: Avoid Tax Filing Mistakes

The article explains how to report income from Unit Linked Insurance Plans (ULIPs) correctly when filing income tax returns for the assessment year 2026-27.

The deadline to file returns is 31 July.

The tax treatment of ULIP proceeds depends on whether the policy qualifies for exemption under Section 10(10D) of the Income Tax Act.

If it does, the maturity amount is tax-free and should be reported as exempt income in Schedule EI.

If it does not qualify, the gains are taxable as capital gains and should be reported in Schedule CG.

Taxpayers must choose the correct ITR form, such as ITR-2 for taxable gains, and verify details in documents like the Annual Information Statement (AIS) and Form 26AS to ensure accuracy.

The premium threshold is calculated based on the total premium paid across all eligible ULIP policies.

Understanding whether a ULIP qualifies for tax exemption is crucial for accurate tax filing.