Vipin Upadhyay Highlights Key Tax Considerations for Reporting ULIP Income in ITRs

Vipin Upadhyay shared his insights on the tax treatment of Unit Linked Insurance Plan (ULIP) proceeds, emphasising the importance of correctly determining whether a policy qualifies for tax exemption before reporting it in the Income Tax Return (ITR).

Commenting in a recent Upstox article, Vipin noted that the reporting of ULIP income requires careful evaluation of the applicable provisions under the Income-tax Act, as not all ULIPs receive identical tax treatment.

According to Vipin, “The tax treatment of ULIP proceeds depends on whether the policy qualifies for exemption under the Income-tax Act. While eligible ULIPs continue to enjoy tax exemption, policies that do not satisfy the prescribed conditions are taxable and must be reported under the appropriate head of income.”

He explained that taxpayers should not assume that every ULIP payout is automatically exempt from tax. Instead, they should carefully assess whether the policy satisfies the statutory conditions prescribed under the Income-tax Act before claiming any exemption.

Vipin further advised taxpayers to review critical factors such as the premium thresholds applicable to the policy, the date on which the ULIP was issued, and the insurer’s statements before determining the correct tax treatment. A thorough assessment of these factors can help taxpayers ensure accurate reporting and avoid inadvertent errors in their returns.

He also cautioned that incorrect reporting of exempt or taxable ULIP income may invite unnecessary queries from the tax authorities, making it essential for taxpayers to verify the eligibility of their policies before filing their ITRs.

Read the full article here: https://upstox.com/news/personal-finance/tax/how-to-report-ulip-income-in-itr-for-ay-2026-27/article-197681/ 

Last Updated on 31 July, 2026