Wednesday, December 9, 2015

LIC Life Insurance - Tax Saving Plans

LIC Life Insurance Premium for Tax Saving

LIC Life insurance policies can be used as tax planning tool as premium paid on Life Insurance Policies is eligible for tax benefits under Section 80C of the Income Tax Act and Maturity proceeds from the policy are also eligible for exemption under section Section 10(10D) and Section 10(10A)(iii). Life Insurance helps Assessee not only in tax saving but also achieving their long term goals and it also provides Comprehensive financial protection against unforeseen events for your family.

Maximum Limit – Maximum Deduction allowed under this Section is Rs. 1.50 Lakh and the sum includes payment on other allowable investment option available Under Section 80C of the Income Tax Act,1961. 

Only life insurance premia paid or deposited during the financial year are allowable as deduction under Section 80C for that year.

On Whose Life insurance premia Can be Paid-
On Own life / Self
  • On Wife/husband
  • Child / Children

If you are paying premium for more than one LIC insurance policy, all the premiums can be included for tax exemption.

Taxability of Maturity Proceeds
Section 10(10D)
The proceeds under a life insurance policy are exempt under Section 10(10D) of the Act, subject to the provisions of the said section.
Section 10(10A)(iii)
Commuted Pension received from Pension fund (Pension Plans approved by IRDA) would be tax free.
Service Tax on Life Insurance Premium
All premiums and charges are subject to applicable taxes including service tax, education cess and secondary and higher education cess as applicable under the prevailing tax laws.

To know more about the
LIC Tax saving plans available

Call or Whatsapp 9945689986

Get Expert Advice from LIC at the comfort of Your Home. Contact us today For New LIC Policy. Life Insurance from LIC's Authorised Agent in Bangalore. Insurance Agent - LIC.

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