Income Tax Return filing: Benefit from life insurance policy, simply do this
Income Tax Return filing: The public should be aware that Income Tax Return filing for the financial year 2018-19 will start just a few months down the line. If you are also one of the people who will be filing income tax returns in the Assesment Year 2019-20, then you must have made some investments to save taxes as well as get covered in terms of accidents and ailments.
Income Tax Return filing: Investments in Life Insurance
Income Tax Return filing: These investments may be in Life Insurances, in PPF or in Mutual Funds SIP among other investment tools. If you have invested in any Life Insurance scheme and have been paying premiums, then you can claim exemptions under Section 80C. Here are some key details about the deductions claimed for Life Insurance policy: (Pixabay image)
Income Tax Return filing: In whose name should policy to be taken?
Income Tax Return filing: In case of an individual, deduction is available in respect of policy taken in the name of taxpayer or his/her spouse or his/her children. In case of a HUF, deduction is available in respect of policy taken in the name of any of the members of the HUF. No deduction is available in respect of premium paid in respect of policy taken in the name of any person, other than given above. (Pixabay)
Income Tax Return filing: Deduction Allowed
Income Tax Return filing: Overall deduction u/s 80C (along with deduction u/s 80CCC & 80CCD) allowed is up to Rs 1,50,000. (PTI)
Income Tax Return filing: Restriction on the amount of deduction
Income Tax Return filing: A deduction is restricted to 20% of capital sum assured in respect of policies issued on or before 31 -3 -2012 and 10% in case of policies issued on or after 1-4 -2012. In case of policy taken on or after 1 -4 -2013 in the name of any person suffering from a disability or severe disability referred to in section 80U or suffering from disease or ailment as given in section 80DDB, the limit will be 15% of capital sum assured. (Reuters)
Income Tax Return filing: Minimum holding period
Income Tax Return filing: The minimum holding for a Life Insurance Policy is 2 years. (Pixabay)