Section 80 C of the Income Tax Act, 1961 allows tax exemption up to Rs.1.5 lakh p.a. on your Term Insurance plan or Moneyback plan.
But, who can avail this benefit?
Yourself (assesse)Your spouseYour dependent children
However, there are certain clauses for the deductions:
In case your term insurance policy is issued on or after April 1, 2012, then tax deduction is applicable only for the total premium amount valued up to 10% of the maximum sum assured.In case your term insurance policy is issued on or before March 31, 2012, then tax deduction is applicable only for the total premium amounting to a maximum of 20% of the sum assured.In case you are suffering with any disabilities or illness, then tax deduction is applicable if you haven’t paid premiums amounting to 15% or more of the total sum assured. This clause is again applicable for a policy that has been issued on or after April 1, 2013.
Besides, a member of the Hindu Undivided Family (HUF) can also avail the above tax benefits under this section.
You can also claim this tax benefit on any other investments made apart from the *LIFE INSURANCE*
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