We take life insurance policies to secure future of our family in times of a sudden mishaps. While, this is an investment, the first thing that comes to mind is if the scheme has any tax benefits or not. Yes, life insurance policies have tax benefits. In SBI Life Insurance policies, here are the tax benefits that you get.

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-- Tax benefit on premium paid: Income tax benefit/deduction on premium paid is available under section 80C of the Income Tax Act, 1961. In case the premium paid during the financial year exceeds 10 per cent of the sum assured, the benefit will be limited up to 10 per cent of the sum assured.

-- Tax benefit on maturity/surrender value: Income tax exemption under section 10(10D) of the Act is available at the time of maturity/surrender, subject to the premium not exceeding 10% of the sum assured in any of the years during the policy term.

-- Tax benefit on death proceeds: Death proceeds are not taxable. However, this is subject to certain conditions under section 10(10D) of the Act.

-- TDS on proceeds: Insurance proceeds, which are taxable under section 10(10D) of the Act, may be subject to TDS as per the prevalent income tax laws applicable to Resident Indians and Non Resident Indians(NRI's).

This is subject to Double Taxation Avoidance Agreement (DTAA) in case of NRI's.

SBI Life Insurance Company Ltd is one of the leading Life Insurance companies in India. It is a joint venture between India’s largest bank State Bank of India and the leading global insurance company BNP Paribas Cardif.

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There are a number of products and services SBI Life is offering including products for child's education, care-free retirement plan, financial security, family protection plans and wealth creation.