Life Insurance Policy 80C

Deduction under section 80C of income tax act is available only when you make the payment or deposit the life insurance premium. All the above benefits of getting deduction for life insurance premium paid shall be reversed if the policy terminated or cease to be in force within 2 years after the date of commencement of such insurance policy.. Eligibility for Life Insurance policy to get Tax Benefit? The tax benefits for Life Insurance are at two stages: While investing, the investment is exempted up to Rs 1.5 Lakhs as part of section 80C At the time of maturity, the maturity amount paid to the survivor u/s 10(10D) is tax free. Under Section 80C, 80CCC & 80CCD, you can reduce your taxable income. Each financial year, we look for ways to save our taxes when filing them. But first, understand what are the tax deductions under sections 80C, 80CCC & 80CCD you can claim as a taxpayer.. Section 80C: Tax Saving Life Insurance Premium Amount and Deduction. One of the most popular investment tools to get tax deduction under Section 80C of the Income Tax Act, 1961 is the life insurance plan. The plan is a highly preferred investment option for taxpayers and has been in existence for many years..

There requires a minimum holding period for investments to claim tax deduction under section 80C. You need to hold your life insurance policy for a minimum period of 2 years. For ULIP policies, senior citizens saving scheme and post office time deposit, the minimum holding period is 5 years.. Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time..

The amount you contribute towards PPF is eligible for tax deductions under Section 80C of the Income Tax Act. Premium payments towards life insurance: If you have purchased a life insurance policy for yourself, your children or your spouse, the premiums you pay towards it are eligible for deductions under Section 80C of the Income Tax Act..