Reply by Mr. Abhishek Bondia, SecureNow Insurance Broker
Pvt Ltd
Life insurance is one of the eligible instruments
for income tax saving under section 80C of the income-tax Act.
Any payment made towards such a policy is allowed
as a deduction from the total taxable income subject to a maximum of Rs.1.5
lakh. Unit-linked, endowment, or / term
insurances are eligible.
Both regular & single premium are eligible
too.
Two conditions have to be met to avail the income
tax benefit.
First, the death benefit on the plan should be
more than or / equal to 10 times of the annual contribution.
If this condition is not fulfilled, proportionate
premium is disallowed.
Second, an amount should not be withdrawn from
the plan within five years of payment. If there is partial or total withdrawal,
the corresponding premium allowed as deduction initially will be considered as
income for that year.
Mr. Mr.
Abhishek Bondia is Director at SecureNow Insurance Broker Pvt Ltd
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