Under Section 80C of the Income Tax Act, individuals and HUFs can claim deduction up to a total of Rs 1.5 lakh along with other instruments on purchase of a life insurance policy or payment of premium for an already in force policy.
New Delhi: Life Insurance Update: The deadline for filing income tax returns for the financial year 2020-21 has been extended till March 15. That is, now you can do for better tax planning in so many days. We are going to tell you about some tax deductions, which you can claim on your investments, earnings and other types of payments. Remember that this tax deduction is not for the new tax system.
Tremendous exemption in tax
If you have not claimed deduction yet and you want to get income tax exemption under section 80C, then you can get tax exemption up to Rs 1.5 lakh on life insurance premium. Let us know its details.
Tax exemption will be available on the premium of Life Insurance
Under Section 80C of the Income Tax Act, individuals and HUFs can claim a deduction of a total of Rs 1.5 lakh along with other instruments on payment of premium for life insurance policies. Above all, it is not mandatory for you to buy an insurance policy from an Indian insurance company to get this deduction. Under this, if an NRI or foreign national makes taxable income in India, then he can claim this deduction on the policy purchased outside the country.
Discount is available on these policies
Now let us see which policies will get this discount. This claim can be made from pure insurance products like term insurance to insurance less investment products like ULIP. Any taxpayer can claim exemption on payment of premium for a life insurance policy of his own, spouse or children.
Know how much discount you will get
Under this, any policy made after April 1, 2012, can be claimed for rebate on payment of 10% or less of the sum-insured premium. At the same time, for the disabled, this range is 15 percent. At the same time, let us tell you that a discount of up to 20% can be taken on the policy purchased before April 1, 2012.
Know Terms and Conditions
- There are also many terms and conditions for this policy.
- In this, the benefit of tax exemption is available on the life insurance policy which is active for at least two years.
- In this case, the deduction of the previous year is reversed and the same is added to the income of the year when the policy lapsed.
- Even if you pay the premium of an annuity plan, you can still get tax exemption under 80C.
