Tax Benefits for Insurance Plans LIC OF INDIA

Tax Benefits for Insurance Plans
1) Deduction from Income for payment of Premium (Sec. 80C).
(a) Life Insurance premia:The insurance premia paid for a policy is eligible for deduction. The premium paid should not be in excess of 20% of capital sum assured.
(b) Contribution to Deferred Annuity Plans : The premia paid for a Deferred Annuity , provided such contract does not contain a provision to exercise an option by the insured to received a cash payment in lieu of the payment of annuity is eligible for deduction.
(c) Contribution to Pension/Annuity Plans :Contribution to New Jeevan Dhara-I and New Jeevan Akshay-V Schemes of LIC are qualified for rebate under this section.
2) Income tax exemption on Maturity/Death Claims proceeds under Section 10(10D)
All the benefits payable under a Life Insurance policy are tax free. However in cases the premium paid in excess of 20% of the capital sum assured within a year, benefits paid excess of premiums will be taxable. The benefits from a key man Insurance policy and any sum received under Sec 80DD, Sub-section (3) are also taxable.
3) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)
Amounts paid from the taxable income to premiums of the above annuity are deductible.
4) Deduction under section 80D
Medical Premium paid for a Health Insurance policy is deductible to the extent of Rs. 15000 for an assessee and/or his family members� policiy/s. A separate exemption to the extent of Rs. 15,000 for premiums paid for an assessee�s parents is also available. If any one or both of the parents are Senior citizens, then an enhanced exemption limit of Rs. 20,000 is available. Section 80D also covers payment of premium exclusively for Critical Illness Rider.
Avail Income Tax Benefit of Rs.15,000/- under section 80 (D) by investing in Health Protection Plus Plan
5) Jeevan Aadhar Plan (Sec.80DD)
Premium paid for LIC Jeevan Aadhar Plan (for the maintenance of an handicapped dependent) is eligible for deduction from the total income to the extent of Rs.50,000 and to the extent of Rs.75,000/- where handicapped dependent is suffering from specified severe disability.
6) Exemption in respect of commutation of pension under Jeevan Suraksha & Jeevan Nidhi Plans.(Section 10A):
A payment received by way of commutation of pension from Jeevan Suraksha & Jeevan Nidhi Annuity plans is exempt from tax

Free Quotations
You can contact us at 9986184653 or write to rsantoshrathod@gmail.com for free quotations by providing your Name, Date of birth, etc