In this article I will be writing about the tax exemption for insurance premium. It is obvious that insurance premium is in everyone’s portfolio for the tax savings. Don’t buy the insurance only for the tax savings purpose. Also learn about the other facts related to tax savings on insurance premium. If you have any doubts, please post it in the comments section. Subscribe to our free email updates.
Life Insurance Premium u/s 80C
It is one of the most widely selected option for the tax saving investment. It is good if you have taken the insurance not only for the tax saving purpose, also choose it based on your need. I have written many article about the term insurance and insurance vs investment. The following are the few points related to the life insurance premium as the tax saving component:
- Tax deduction is allowed for the insurance premium paid for self, spouse and children.
- Insurance Premium paid for parents are not allowed for the deductions.
- Insurance company can be not only LIC, any other private companies also allowed.
- If you have more than one insurance policy, you can add all the policy premiums for the deductions.
- If you are paying the single premium plan, then maximum 20% of sum assured is allowed for the deductions.
I hope this article will be useful for knowing about the tax deduction for the insurance premium. If you have any doubts, please post it in the comments section.
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