Insurance Avenues for Tax Benefits

3 Broad Insurance Related Tax Saving Areas

Life Insurance

Health Insurance

Pension Plans

Sources:

http://www.tax.fintotal.com/Sections/10-10D-Tax-Rebate/3976/68

*Based on Policy plan, insurer, and year of policy subscription, this could vary

Life Insurance

Health Insurance

Pension Plans

80C 1.5 L 10(D)

Tax benefit under Section 80C of Income Tax Act

Maximum Deduction permissible

Tax-free* proceeds on maturity/death

Smart Tips:

80D 15 K 20 K

Tax benefit under Section 80D of Income Tax Act

Maximum deduction that can be claimed

Maximum deduction that can be claimed (Senior Citizens)

80CCC 1 L 1/3

Tax benefit under Section 80CCC of Income Tax Act

Maximum deduction that can be claimed

At maturity, 1/3rd of the maturity amount is tax-free

Begin your Tax Planning at the start of the Financial Year. i.e. on April 1st

In case the amount paid towards life insurance premium is > 10% of the Sum Assured, tax deduction only up to 10% is applicable

Maturity proceeds in a life insurance policy are fully exempt in the event the premium paid did not exceed 10% of the Sum Assured in any yearSurrender Value of a policy is exempt from income tax as per section 10(10D) provided certain conditions are met