ULIP offers tax benefits under section 80C of the Income Tax Act, 1961 to an individual for the premiums paid subject to the conditions/limits specified therein. The death and maturity benefits received from a ULIP is exempted under section 10 (10D) of the Income Tax Act, 1961, subject to the conditions specified therein. Where the amount paid to the policyholder is not exempt under the provisions of section 10(10D), the said amount will be subject to tax deduction at source by provisions of section 194DA of the Act.