SOME IMPORTANT INCOME TAX
BENEFITS AVAILABLE UNDER VARIOUS PLANS OF LIFE INSURANCE ARE HIGHLIGHTED
BELOW:
1) Deduction
allowable from Income for payment of Life Insurance Premium (Sec.
80C).
(a) Life
Insurance premia paid in
order to effect or to keep in force an insurance on the life of the assessee or
on the life of the spouse or any child of assessee & in the case of HUF,
premium paid on the life of any member thereof under an insurance
policy , ( other than a contract for a deferred annuity,) issued on
or before the 31st day
of March 2012 shall be eligible for deduction only to
the extent of 20% of the actual capital sum assured.
(b) Life
Insurance premium paid in
order to effect or to keep in force an insurance on the life of the assessee or
on the life of the spouse or any child of assessee & in the case of HUF,
premium paid on the life of any member thereof , under an insurance
policy , ( other than a contract for a deferred annuity,) issued on or
after the 1st day
of April 2012 shall be eligible for deduction
only to the extent of 10% of the actual capital sum assured.
Where the policy, issued on or after the 1st day of April, 2013, is for
insurance on life of any person, who is -
(i) a person with disability or a person with severe disability as referred to
in section 80U, or
(ii) suffering from disease or ailment as specified in the rules made under
section 80DDB, deduction under this section is allowed only to the extent of
15% of the actual capital sum assured.
(c) Contribution
to deferred annuity Plans in
order to effect or to keep in force a contract for deferred annuity, on
his own life or the life of his spouse or any child of such individual,
provided such contract does not contain a provision to exercise an option
by the insured to receive a cash payment in lieu of the payment of annuity is
eligible for deduction.
(d) Contribution to Annuity Plans - New Jeevan
Dhara , New
Jeevan Dhara - I & Jeevan Akshaya - VI
2) Jeevan
Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)
A
deduction to an individual for any amount paid or deposited by him from his
taxable income in the above annuity plans for receiving pension
(from the fund set up by the Corporation under the Pension Scheme) is allowed.
NOTE:
The aggregate amount of deduction under u/s 80C, 80CCC & 80CCD(1) shall not
in any case exceed one lakh Rupees . However, there is
no sectoral cap i.e. the limit of Rs.1,00,000/- can be exhausted by paying premium
under any of the said sections.
.
3) Deduction
under section 80D
a) Deduction
allowable upto Rs.15,000/- if an amount is paid to keep in force an
insurance on health of assessee or his family (i.e. Spouse & dependent
children) or any contribution made to the central Government Health Scheme or
on account of Preventive health check - up of the assessee or his family .
b) Additional
deduction upto Rs.15,000/- if an amount is paid to keep in force an insurance
on health of parents or on account of Preventive health check - up of the
parent of the assessee, whether dependent or not .
c) In case
of HUF, deduction allowable upto Rs.15,000/- if an amount is paid
to keep in force an insurance on health of any member of that HUF
d) If the
sum specified in (a) or (b) or (c) is paid to effect or keep in force an
insurance on the health of any person specified therein who is a senior
citizen, then the deduction available will be up to Rs.20,000/-. Here senior
citizen means the person who is of sixty year or more during the previous year.
e) e) In
Case the amounts are paid in (a) or (b) or (c) on account of preventive health
check up , the deduction for such amounts shall be allowed to the extent it
does not exceed in aggregate Rs. 5,000 /-.
f) f) For
the purpose of deduction , the payment shall be made by
i. i. Any
mode, including cash. In respect of any sum paid on account of preventive
health check up .
ii. Any
mode other than cash in all other cases.
g) g) The
insurance as mentioned above shall be in accordance with the scheme framed by
i. i. The
General Insurance Corporation of India as approved by the Central Government in
this behalf or;
ii. Any
other insurer and approved by the Insurance Regulatory and Development
Authority.
4) Jeevan
Aadhar Plan (Sec.80DD) :
Deduction from total
income upto Rs.50000/- allowable on amount deposited with LIC under Jeevan
Aadhar Plan for maintenance of an handicapped dependent
(Rs.1,00,000/- where handicapped dependent is suffering from severe disability)
5)
Exemption in respect of commutation of pension under Jeevan Suraksha
& Jeevan Nidhi Plans:
Under
Section 10(10A) (iii) of the Income-tax Act, any payment received by way of
commutations of pension out of the Jeevan Suraksha & Jeevan Nidhi Annuity
plans is exempt from tax.
6) Income tax exemption on Maturity/Death Claims
proceeds under Section 10(10D)
As per
Section 10(10D) of the Income Tax Act, 1961, any sum received under a Life
Insurance Policy, including the sum allocated by way of bonus on such policy is
exempt from tax where the sum is received as a death benefit However, to get
exemption under above section for sum received other than death benefit
i) Policy shall not be issued under Section 80DD(3), or
ii) Policy shall not be issued as a Keyman Insurance Policy, or
iii) policy which has been issued on or after April 1, 2003 and if the premium
paid in any of the years during the term of the policy shall not exceed 20% of
the Actual Capital Sum Assured.
iv) policy which has been issued on or after April 1, 2012 and if the premium
paid in any of the years during the term of the policy shall not exceed 10% of
the Actual Capital Sum Assured.
Where the policy, issued on or after the 1st day of April, 2013, is for insurance
on life of any person, who is—
(a) a person with disability or a person with severe disability as referred to
in section 80U, or
(b) suffering from disease or ailment as specified in the rules made under
section 80DDB, exemption under this section shall be available only if the
premium payable in any of the years is not more than 15% of the actual Capital
Sum assured.
Under the provisions of section 10(10D) of the Income-tax Act, 1961,
Maturity/Death claims proceeds of life insurance policy, including the sum
allocated by way of bonus on such policy (other than amount to be refunded
under Jeevan Aadhar Insurance Plan in case of handicapped dependent predeceases
the individual or amount received under a Keyman Insurance Plan) ,is exempted
from income- tax. However any sum (not including the premium paid by the
assessee ) received other than death claim under an insurance policy issued on
or after the 1st day of April 2003 but on or before the 31st day of March, 2012
in respect of which the premium payable for any of the years during the term of
the policy exceeds twenty per cent of the actual capital sum assured will no
longer be exempted under this section . Further any sum (not including the
premium paid by the assessee ) received other than death claim under an
insurance policy issued on or after the 1st day of April 2012 in respect of
which the premium payable for any of the years during the term of the policy
exceeds ten per cent of the actual capital sum assured will no longer be
exempted under this section . Where the policy, issued on or after the 1st day
of April, 2013, is for insurance on life of any person, who is-
(i) a person with disability or a person with severe disability as referred to
in section 80U, or
(ii) suffering from disease or ailment as specified in the rules made under
section 80DDB, if the premium payable for any of the years during the term of
the policy exceeds fifteen percent of the actual capital sum assured the
exemption under this section will not be available.
Further
Details
9994760712,9488760712,9443388475
