Is there any tax benefit on the premium I pay for my insurance policy
Deduction is available under Section 80C of Income Tax Act, 1961 for the premium paid on life insurance policies with a maximum annual ceiling of Rs. 1,50,000, irrespective of the Gross total income (subject to fulfillment of certain conditions).
After the maturity of my policies, will the maturity proceeds be taxable?
Under section 10(10D) of Income Tax Act, 1961 maturity benefits are tax free in the hands of policyholders if, at any point of time during the policy term, premiums paid in any year do not exceed 20%of the basic Sum Assured. For policies issued on or after 01st April 2012 premium should not exceed 10% of minimum sum assured at any point of time during the term of policy.
I pay the premium on policy for my wife/husband/child, can I claim Tax benefits?
Life insurance premium paid by you for your wife/husband/child's policy qualifies for a deduction under Section 80C of the Income Tax Act, 1961.
If I stop paying premiums on my life insurance or pension policies, can I claimTax Benefits?
If you stop premium payments of your policy, it amounts to discontinuation of the policy and no tax benefits are available in respect of such policy.
If I purchase a Unit Linked Insurance Plan (ULIP) and I choose to discontinue my policy, can I claim any tax benefits?
If you chose to discontinue a Unit Linked Insurance Plan before paying for 5 years from commencement of policy, you are not entitled to any tax benefits in the previous year in which the taxpayer terminates the plan. The quantum of deduction already taken in the preceding years would be deemed as the income of the taxpayer in the year in which policy is terminated.