LIFE INSURANCE ADVISORY LIC0286673H

INCOME TAX REBATES ON VARIOUS SAVINGS:.

I 80C: AN INDIVIDUAL WILL BE ENTITLED TO DEDUCTIONS FOR WHOLE OF AMOUNTS PAID OD DEPOSITED IN THE CURRENT FINANCIAL YEAR IN THE FOLLOWING SCHEMES, SUBJECT TO THE MAXIMUM OF Rs,1,50,000/-

1. Insurance Premium Paid on the policies of Assessee, Spouse, and children including Premiums Paid under ULIPs.

2. Premium Paid under deferred & immediate and immediate annuity plan (Pension Plans).

3.Contribution to Provident Fund/PPF (up to Rs.1,50,000/-) Contribution to National Pension Scheme.

4. Savings in Tax Saving Mutual Funds/ Equity Liquid Savings Scheme.

5. Repayment of Housing Loan Principle.

6. Tuition fees Paid for the full-time education of any 2 children.

7. Postal term deposits under term deposit rule 1981/NSE.

8. Amount paid under Senior Citizens Savings Rules, 2004

9.Fixed Deposit with the Banks /Postal Office Minimum of 5 years term (Tax Savings Scheme)

10. A MAx of 50,000/- under NATIONAL PENSION SCHEME is exclusive & in addition to 1,50,000/- for those who are below 60 years of age.

II Section 80D: (Deduction for the premium paid for Medical Insurance)

1. Deduction under this section is available to an individual of a Huf. A deduction of Rs.25,000 can be claimed for insurance of self, spouse, and dependent children. An additional deduction for insurance of parents is available to the extent of Rs, 25,000 if they are less than 60 years of age or Rs, 50,000 (has been increased in Budget 2018 from 30,000) if parents are more than 60 years old.

2. Therefore, the maximum deduction available under this section is to the extent of Rs.1,00,000

3. from FY 2015-16 a cumulative additional deduction of Rs, 5,000 is allowed for a preservative health checkup to individuals.

III Section 80DD: ( Deduction for Rehabilitation of Handicapped Dependent Relatives)

1. Expenditure incurred for the medical treatment of handicapped dependent

2. Amount paid under Insurance scheme by LIC (Jeevan Aadhar Policy) for Maintenance of Handicapped dependants.

Deductions allowed under 1 & 2 above is Rs,75,000/- ( If the dependents is a person with severe disability Rs.1,25,000 is allowed)

IV Section 24: Housing Loan interest up to Rs. 2.0 LAc per annum.

INCOME TAX EXEMPTION O SB/MATURITY/DEATH CLAIMS PROCEEDS UNDER 10 (10D):

Section 10 (10D) of Income Tax exempts any income received from the insurance policy from Income Tax. This benefits policies such as Endowment Plans, Whole-Life Plans, and Unit Linked Plans, all of whose returns and bonuses become tax-free.

Eligibility for 10 (10D) exemption.

Any amount you get from life insurance product-be it ULIP, traditional policy or term plan does not form part of your income that is taxable.

However, the following are not exempted under section 10 (10D)

1. The payout on annuity or pension plan

2. Insurance Policy for a disabled dependent

3. Employer-sponsored group life insurance scheme

4. Any Policy where Premium in any year is more than 20% of the sum insured if it were bought after 1 st April 2003 but before 31st April 2012 or if more than 10% of the sum insured if it were bought after 1st April 2012.

5. A life insurance policy bought after 1st April 2013 for disabled or those suffering from ailments in section 80DDB if a premium is more than 15%of sum assured.

The above conditions do not apply to death claims or any amount received on the death of the insured person.

Maximum deduction limit under 10 (10D)

There is no cap on the extent of the tax-free income from life insurance proceeds. Any amount received is exempted from income tax as long as the conditions above are fulfilled.

Surrender value is also exempt from income tax as per section 10 (!0D) provided conditions above are not violated.