What are the tax benefits available to an individual in respect of premium paid on life insurance policies?
Rebate under Section 88 is available in respect of life insurance premium only up to Assessment Year 2005-06. From the Assessment Year 2006-07, life insurance premium paid by an individual qualifies for a deduction under Section 80C of Income Tax Act, 1961. An individual can claim deduction on premium paid for a maximum of Rs 100,000 in each financial year. However, an individual can claim deduction on premium paid on a pension plan for a maximum of Rs 10,000 in each financial year. This forms part of the overall Rs 100,000 limit under Section 80C. Are maturity proceeds on life insurance and pension policies taxable? The maturity proceeds of life insurance policies are not taxable. However, under pension plans, upto one-third of the maturity amount can be withdrawn in cash and the same is treated as tax-free. An annuity has to be purchased with the remaining two-third amount. Pension receipts from the same will be treated as income in the hands of the assessee and taxed accordingly. Ca
Life insurance premium paid by an individual qualifies for a deduction under Section 80C of Income Tax Act, 1961. An individual can claim deduction from gross total income on premium paid for a maximum of Rs 100,000 in each financial year. Amount deductible under Section 80C is equal to: • 100% of the “qualifying investment”, which includes life insurance premium, or • Rs 100,000, whichever is lower.
Rebate under Section 88 is available in respect of life insurance premium only up to Assessment Year 2005-06. From the Assessment Year 2006-07, life insurance premium paid by an individual qualifies for a deduction under Section 80C of Income Tax Act, 1961. An individual can claim deduction on premium paid for a maximum of Rs 100,000 in each financial year. Deduction under Section 80C is a deduction from gross total income.
Rebate under Section 88 is available in respect of life insurance premium only up to the assessment year 2005-06. From the assessment year 2006-07, life insurance premium paid by an individual qualifies for a deduction under Section 80C of Income Tax Act, 1961. An individual can claim deduction on premium paid for a maximum of Rs 100,000 in each financial year. Deduction under Section 80C is a deduction from gross total income. Amount deductible under Section 80C is equal to: • 100% of the ‘qualifying investment,’ which includes life insurance premium, or • Rs 100,000, whichever is lower. What are the tax benefits available under pension plans? Under Section 80CCC, where an individual assessee has paid/deposited any amount for any annuity plan of the Life Insurance Corporation of India or any other insurer receives pension from a fund referred to in Section 10(23AAB), he/she will be allowed a deduction up to Rs 10,000 from the total income. • Here’s how everyone can save tax! • Do you
