Why Do You Need Tax Planning?

Deductions are available only on pension plans – a specialized form of life insurance policies. This section allows deductions for premiums paid towards the scheme for up to the maximum amount of Rs. 1,50,000.

Income tax benefit is available to an individual or a member of a Hindu Undivided Family. This deduction is also available for policy availed in the name of individual, his/her spouse, and dependent children. Deduction benefit is available on amount of up to Rs. 25,000. An additional deduction benefit of Rs. 25,000 is available if the policy is availed in the name of parents. For parents, if they are senior citizens, higher deduction amount of Rs. 50,000 is permitted.

Premium paid for policy availed in the name of disabled dependent is eligible for deduction amount of up to Rs. 75,000 each year. In case of severe disability, higher deduction amount of Rs. 1,25,000 is permissible.

Sum received under a life insurance policy will be exempt from tax. This also includes any amount received through the policy in the form of bonus, or Section 80DD(3), or 80DDA.

Therefore, a life insurance policy will help you in efficient tax planning. So why not buy a policy for yourself today?