For tax saving, insurance plans are considered one of the best options. There are many different plans which offer tax saving up to Rs 1.50 lakhs as per Section 80C of Income Tax Act, 1961. There are many tax benefits offered under tax saving insurance plans. Some of the benefits are mentioned below:-
Tax Savings Available Under Insurance Plans The following are the sections under which tax-saving insurance plans holder can get:- Section 80 D - Under Section 80 D of Income Tax Act, 1961, one can save up to Rs 1 lakh. For such tax rebates, one needs to buy medical health insurance to get savings on the premiums paid up to Rs 25,000 in a particular financial year. Under a health insurance policy, one can get covered against the hospitalisation costs and also get tax benefits at the same time. Section 80 C - Under Section 80 C of Income Tax Act, 1961, one can save up to Rs 1.5 lakh. For similar tax rebates, one is required to buy insurance plans to get tax exemption on the premiums paid. This plan also has maturity and death benefits. Further, plans which are taken for couples have double benefits. As per Section 80 C, they can save tax up to a maximum of Rs 3 lakhs. Section 10 (10D) - Under this section, one can get a tax exemption on the maturity or death or any lump sum benefit which is paid by the policy on the maturity or death benefit of the policyholder. Section 24(b) - Under Section 24(b), one can save tax up to 2 lakhs by investing in house property for extra tax savings. Section 80 E - There are some insurance plans which also offer loans for kids. Under Section 80 E the interest on an education loan is completely deductible. Tax Saving Insurance Plans Some tax saving insurance plans are:-
Hence insurance policies play an important role in saving tax.
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February 2022
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