You can take the maximum benefit of reducing your tax liability by investing in Insurance Policies offered by different Insurance companies.

I Section 80C

You can avail a deduction up to Rs 1,00,000 from the taxable income if you have paid the premiums for life insurance policy. Amount for deduction available include premiums paid under deferred pension plans and immediate pension plans also. You can also avail the deduction if premiums are paid for your spouse and child's policies. In case of Hindu Undivided Family the premium paid on life of any member is eligible for deduction.

II Section 10 (10D)

According to this section all proceeds received from life insurance policies including sum assured, bonus, guaranteed deductions, loyalty additions and death benefits are exempt from income tax. This is not applicable for proceeds from key-man insurance policies and policies where premiums are more than 20% of the face amount. For example, if your annual premium is one lacs, your sum assured or face amount needs to be greater than or equal to five lacs, to avail the tax benefit.

III Section 10 (10a) (iii)

According to this section the amount commuted, which is one third of the total accumulated corpus under deferred pension plans, is exempt from income tax. This means you can take up to 33.33% of the final corpus as a lump sum.

IV Section 80DD

Premiums paid under approved policies up to a maximum of Rs 50,000 for maintenance of a handicapped dependant is allowed for deduction from your taxable income. Cases where the disability of the handicapped person is severe the deductions are up to Rs. 75,000.

There are many categories of Life insurance schemes like Endowment Plans, Pension Plans, Unit Linked Insurance Plans, Single Premium Plans, Whole Life Plans, and Term Assurance Plans, which you can choose to avail tax benefits under the above sections of the income tax act .

We recommend consulting your tax advisor for your tax planning.

LIFE Insurance Corp.- LIC  |   ICICI Prudential Life Insurance India  |   BAJAJ Allianz Life Insurance India  |   BIRLA SUN Life Insurance India  |   TATA AIG Life Insurance India  |   HDFC Standard Life Insurance India  |   RELIANCE Life Insurance India  |   SBI Life Insurance India  |   OM KOTAK Life Insurance India  |   MAX NEW YORK Life Insurance India  |   METLIFE Insurance India  |   ING VYSYA Life Insurance India  |   AVIVA Life Insurance India  |   BHARTI AXA Life Insurance India  |   SAHARA Life Insurance India  |  

 RELIANCE General Insurance India  |   ICICI Lombard General  |   BAJAJ Allianz General Company  |   TATA AIG General Insurance  |   HDFC CHUBB General Insurance  |   IFFCO TOKYO General Company  |   ROYAL Sundaram General  |   CHOLAMANDALAM General  |   STAR Health Insurance India  |   ORIENTAL Insurance India  |   NATIONAL Insurance India  |   UNITED INDIA Insurance India  |   NEW INDIA Assurance India