Insurance Policies - Income Tax Exemptions & Benefits for LIC Insurance Policy Holders in Personal Finance - (A) LIC Policy can be taken in the name of an individual or any member of hindu undivided family.
06-26-2013 05:01 PM
Income Tax Exemptions & Benefits for LIC Insurance Policy Holders
(A) LIC Policy can be taken in the name of an individual or any member of hindu undivided family.
An individual can claim exemption on LIC premium paid for self, spouse and children including adult children and married daughters,
Under section 80C, 1 Lakh exemption is allowed on the total income, which can include LIC Insurance policy premiums paid.
(B) Under section 80 DD, a deduction upto 1 Lakh per annum is allowed from gross total income, when a contribution is made with LIC for maintenance of a handicapped dependent.
(C) Any sum received under LIC Policy including maturity bonus etc is non taxable (Except Keyman insurance, Jeevan Aadhar, Jeevan Dhara, Jeevan Akshay, New Jeevan Dhara, New Jeevan Akshay and Dhanaraksha Mutual Fund).
(D) Premiums exceeding 20% of the sum assured, for policies taken on or after 2003 and 10% of sum assured for policies taken after 2012 in any year, will not enjoy tax free returns (Except on death during the policy term)
Visitors found this page by searching for:
Income tax for policyholders LIC
Tags for this Thread