Insurance Policy Tax: Tax exemption of 1.5 lakh will be available on this special policy! There is a chance till 31 March, see details

Under Section 80C of the Income Tax Act, individual and HUF can claim a deduction of up to Rs 1.5 lakh on purchase of Life Insurance Policy or payment of premium for an already running policy along with other instruments.

Life Insurance Update:  The deadline for filing income tax return for the financial year 2021-22 is till 31 March. We are going to tell you about some tax deductions that you can claim on your investments, earnings and other types of payments. Remember that this tax deduction is not for the new tax system.

Will get tremendous tax exemption 

If you have not yet claimed the deduction and want to get income tax exemption under section 80C, then you can get tax exemption of up to Rs 1.5 lakh on life insurance premium. Let’s know its details.

Tax exemption will be available on the premium of life insurance

Under Section 80C of the Income Tax Act, individuals and HUFs can claim a total deduction of Rs 1.5 lakh on the payment of premiums for Life Insurance Policy along with other instruments. The biggest thing is that it is not mandatory for you to buy an insurance policy from an Indian insurance company to get this deduction. Under this, if an NRI or foreign national earns taxable income in India, he can claim this deduction even on policies bought outside the country.

Discount is available on these policies

Now let’s see on which policies this discount will be available. This claim can be done on term insurance like- pure insurance products to insurance cum investment products like ULIP. Any taxpayer can claim exemption on payment of premium for life insurance policy of self, spouse or children.

Know how much discount will be available

Under this, for any policy made after April 1, 2012, a rebate of 10% or less of the sum assured can be claimed for the payment of premium. At the same time, for the disabled, this limit is 15 percent. At the same time, let us tell you that up to 20% discount can be taken on the policy purchased before April 1, 2012.

Know the terms and conditions 

• There are also many terms and conditions for this policy.
• – In this, the benefit of tax exemption is available on the Life Insurance Policy which remains active for at least two years.
• – In this case, the deduction of the previous year is reversed and added to the income of the year in which the policy would have lapsed.
• – Even if you pay the premium of an Annuity Plan, you can get tax exemption under 80C.

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