One of the very commonly known sections amongst taxpayers, Section 80C allows you to reduce your taxable income by ₹1.5 lakhs every year.
With life insurance plans, you can avail tax savings of up to ₹46,800 which is calculated at the highest tax slab rate of 31.20% (including cess, excluding surcharge), towards premiums paid subject to conditions under Section 80C of the Income Tax Act, 1961.
You can reduce your taxable income by ₹25000 under Section 80D on premiums paid towards health insurance or any health related benefits under a life insurance plan. Under health insurance this benefit can be availed on insurance for self, spouse and dependent children and parents.
With life insurance plans, you can avail tax savings of up to ₹7,800 which is calculated at the highest tax slab rate of 31.20% (including cess, excluding surcharge), towards premiums paid subject to conditions under Section 80D of the Income Tax Act, 1961
Note: Premiums paid under critical illness benefit are tax deductible under this section
This section plays an important role in offering exemptions on benefits received under a life insurance policy. Under this section, any sum received from a life insurance policy, including bonuses, is exempt from tax subject conditions prescribed under them.
This exemption extends to various life insurance claims, such as death benefits, maturity proceeds or surrender values. It is applicable in the new tax regime as well as the old tax regime.
