LIFE INSURANCE AND TAX SAVINGS
- 21-January-2021
- in: Life
Tax deduction up to Rs. 1.5 lakh under section 80C is available on premium one pays towards a life insurance policy being in force. This deduction is available to the assesse on policies on their own name or their spouse or children. In case of HUF, premium paid on the life of an member there of under an insurance policy (other than a contact for a deferred annuity).
For Policies issued on or before March 31, 2012 Deductions are eligible only to the extent of 20% of the actual capital sum assured or when it comes to optimizing your finances well laid out plan plays a crucial role, which is no different when it comes to planning your income tax outgo. There are several aspects to income tax that you should be aware of to make the best use of available tax slab rate that you fall in. Next, understand how your salary is structured to claim the various tax deduction and exemption. This will help you arrive at a tax efficient income.
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