Section 80C (ULIPs)
Removal of High-Premium ULIPs from 80C/123 Deductions
Quick Answer
Section 80C (ULIPs) (Removal of High-Premium ULIPs from 80C/123 Deductions) has been deleted under the Direct Tax Code 2025, effective 1st April 2026.
Sec 80C (ULIPs)
Provision Summary
Investment in any Unit Linked Insurance Plan (ULIP) was eligible for 80C deduction.
Deleted
Provision Summary
Structurally Excluded. ULIPs with high premiums are no longer eligible for this deduction to align with the new Capital Gains framework.
Key Changes & Highlights
- High-premium ULIPs moved to capital gains taxation, losing their deduction status.
Related Sections
Frequently Asked Questions
What does Section 80C (ULIPs) of the Income Tax Act 1961 deal with?
Section 80C (ULIPs) (Removal of High-Premium ULIPs from 80C/123 Deductions) Investment in any Unit Linked Insurance Plan (ULIP) was eligible for 80C deduction.
Is Section 80C (ULIPs) of the ITA 1961 still applicable under DTC 2025?
Section 80C (ULIPs) has been deleted under the Direct Tax Code 2025. Structurally Excluded. ULIPs with high premiums are no longer eligible for this deduction to align with the new Capital Gains framework.
What is the status of Section 80C (ULIPs) under the new tax code?
Section 80C (ULIPs) is marked as "Deleted" with status "Deleted". Impact: High - Major impact on insurance sector sales.
What are the key changes to Section 80C (ULIPs) under DTC 2025?
High-premium ULIPs moved to capital gains taxation, losing their deduction status.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
Need professional help on Section 80C (ULIPs)?
Compare trusted providers — both offer DTC 2025-ready CA services.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?