Is LIC exempt from income tax?

Is LIC exempt from income tax?

No exemption from income tax on the maturity of policies Taxation, where the premium paid, is more than 10\% of the sum assured – Any money received from a life insurance policy, where the premium is more than 10\% or 20\% of the sum assured as the case may be, is fully taxable.

Does LIC come under 80D?

Section 80DD of the Income Tax Act comes under section 80D and deals with tax exemption for any person who is depositing a certain amount with LIC for maintenance of a handicapped person. The limit for this deduction is Rs.

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Is income from LIC policy maturity taxable?

Life Insurance Tax Rules As per Section 10(10D) of the Income Tax Act, the sum assured received on maturity or surrender of a policy or upon the policyholder’s death is completely tax-free.

How can I save tax on my LIC policy?

Tax benefit under section 80C and 80CCC can be availed by the individual assessee and HUF assessee. If the premium paid in a financial year exceeds 20\% of the actual capital sum assured, then tax benefit will be applicable only for the premium up to 20\% of the sum assured.

How can I know my LIC policy without tax?

They are:

  1. Step 1: Visit the LIC’s official web portal i.e.,
  2. Step 2: Find the ‘premium calculator’ tab.
  3. Step 3: Click on the premium calculator tab.

Is LIC policy under 80C?

If I pay a single premium to buy a LIC policy, would the premium be allowed as a deduction under Section 80C? Yes, single premiums are also allowed as a deduction under Section 80C. However, the premium should be limited to 10\% of the sum assured to claim the deduction. Any excess premium paid would be taxable.

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What are the tax benefits on LIC insurance policies?

Tax benefits on LIC insurance policies under section 10 (10D): Any death claims or maturity benefits received by a policyholder are eligible for tax exemption under section 10 (10D) of the Income Tax Act. Here are a few possibilities that are included under this.

What are the tax benefits offered under Section 80CCC under LIC?

Tax exemption offered under section 80CCC on life insurance policies from LIC: Tax benefit under Section 80CCC is provided to the policyholders who pay the premium towards any annuity plan that guarantees pension payment in the later year, from their taxable income.

What are the tax benefits on term insurance?

There are various kinds of tax benefits on term insurance. With most insurance policies, the premium you pay is eligible for LIC policy tax benefits. Under Existing Income Tax Laws, contribution towards life insurance policy is allowed as deduction in income, thereby decreasing tax liability.

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Are life insurance premiums tax deductible?

In case, the life insurance policy is purchased after 1st April 2012 in the name of self/child/spouse, then the premium paid towards life insurance policy is eligible for the tax benefit of up to 10\% of the sum assured. The premiums paid towards deferred annuity are eligible for tax deduction under section 80C of Income Tax Act.