How can I save my lic tax?

Asked by: Nayeli Keebler  |  Last update: February 11, 2022
Score: 4.8/5 (75 votes)

1. Tax exemption offered under section 80C on life insurance policies from LIC: If you have purchased a life insurance policy on or before 31st March 2012 in your own name or in the name of spouse or child, then up to 20% of tax deduction can be availed on the premium paid towards life insurance policy.

Is LIC good tax saving option?

Income tax rates for taxpayers increase with increasing yearly income and as such tax planning plays a crucial role in saving your hard earned money. There are several life insurance policies from LIC that enable customers to not only save and invest their money but also get the benefit of tax exemption.

Is LIC exempted 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.

Can we save tax on life insurance?

The life insurance tax benefits are ingrained in Section 80C of the Income Tax Act, 1961. You can claim a maximum deduction of Rs 1,50,000 per year against the premiums paid for the life insurance policy. The tax saving life insurance plans include policies taken for yourself, or your spouse, or dependent children.

Is LIC premium tax deductible?

(A) The taxpayer can claim deduction under section 80C in respect of premium on life insurance policy paid by him during the year. Deduction is available in respect of policy taken in the name of taxpayer, his spouse and his children.

HOW TO SAVE INCOME TAX FROM LIC

22 related questions found

How much tax do I pay on LIC premium?

For term insurance plans, which are the most economical forms of life insurance, GST applies at a standard 18% on premium payments. For life insurance in the form of Unit-Linked Insurance plans (or ULIPs), GST is also charged at 18%. This covers GST costs for premium payments as well as charges for fund management.

Is LIC removed from 80C?

No, the new tax regime does not allow Section 80C deductions on the premiums paid towards a life insurance policy. You would, therefore, not be able to claim the deduction under the new tax regime.

How can I save tax on my insurance?

  1. You can invest in a Unit Linked Insurance Plan (ULIP) to save tax. ...
  2. Under Section 80C of the Income Tax Act, you can lower your taxable income by investing upto ₹ 1.5 lakh in ULIP premium per financial year. ...
  3. The three-fold continuous tax benefits make ULIP a good investment instrument when it comes to saving tax.

Is SBI life tax saving?

Life insurance is considered a good option for tax saving, as premiums paid can be deducted from your total taxable income. Under section 80C, up to ₹1,50,000 in premiums paid can be reduced from your total taxable income.

Can I show my wife LIC for tax exemption?

Yes, in a family husband or wife any one can pay the life insurance premium and claim the tax benefits under section 80 C of income tax act. Children till the age of 23, their insurance premiums can also be paid and claimed for tax deductions.

What is lip in income tax?

According to rule 80C Tax deduction is allowed for the insurance premium paid for self, spouse and children.

Is maturity amount of LIC taxable?

The maturity proceeds of a life insurance policy enjoy exemption under section 10(10d) of income tax act provided the premium paid in respect of the life insurance policy does not exceed 10% of the sum assured for any year during the premium paying term for the policies issued after 01-04-2012.

Is TDS applicable on LIC maturity?

1 Lakh for deduction of TDS u/s 194DA. Even in a case where the proceeds of the life insurance policy are taxable, no TDS shall be deducted if the amount paid to a policyholder in a financial year does not exceed Rs. 1 Lakh in aggregate. TDS shall be deducted at the prescribed rate of 5%.

How can I save tax on 10 lakhs?

First, there is a standard deduction of Rs 50,000 for salaried individuals. This will reduce the taxable income to Rs 9.7 lakh. Then come the tax-saving investments under Sec 80C, which can reduce taxable income by up to Rs 1.5 lakh. Another Rs 50,000 can be reduced by investing in the NPS under Sec 80CCD(1b).

How can I save tax on 15 lakhs?

1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
  1. Unit Linked Insurance Plans (ULIPs)
  2. Pension or Annuity Plans from Life Insurance Companies.
  3. Public Provident Fund (PPF) & Employee Provident Fund (EPF)
  4. New Pension Scheme Tier-I Account.
  5. Senior Citizen Savings Scheme.

How can I save tax in 2020?

Here's a list of popular investment options to save tax under section 80C.
  1. Public Provident Fund.
  2. National Pension Scheme.
  3. Premium Paid for Life Insurance policy.
  4. National Savings Certificate.
  5. Equity Linked Savings Scheme.
  6. Home loan's principal amount.
  7. Fixed deposit for a duration of five years.
  8. Sukanya Samariddhi account.

How can I get LIC 80C certificate?

LIC Premium Paid Certificate Download For Income Tax Purpose Online
  1. Register Online for LIC e-Services. ...
  2. Login to e-Service Portal. ...
  3. Go to the Basic Services. ...
  4. Go to Policy Premium Paid Statement. ...
  5. Select Policy for Premium Paid Statement. ...
  6. Generate a premium paid certificate.

Which LIC policy is best for tax exemption?

LIC Jeevan Anand is the best Tax Saving Plan in India.

You can save 30% tax (if in the Tax Slab based on your income) every year on the Premium paid towards your policy. Also the Maturity Benefit at the end of policy term is also Tax Free. The second maturity the nominee receives is also Tax Free.

Can LIC premium be paid in cash for 80C deduction?

(A) The taxpayer can claim deduction under section 80C in respect of premium on life insurance policy paid by him during the year. ... Deduction is restricted to 20% of capital sum assured in respect of policies issued on or before 3 1-3-2012 and 10% in case of policies issued on or after 1-4-2012.

How can I check my LIC premium without tax?

They are:
  1. Step 1: Visit the LIC's official web portal i.e., www.licindia.in.
  2. Step 2: Find the 'premium calculator' tab.
  3. Step 3: Click on the premium calculator tab.

How can I check my LIC maturity amount?

Step 1:The insured needs to visit the official website of LIC. Step 2:On the home page, the user can select the option of "New User." Step 3:In the next step, he can fill up his personal details such as name, date of birth, policy number, mobile number, email address, etc.

Is Jeevan Anand maturity amount taxable?

The LIC Jeevan Anand is a traditional participating whole life endowment policy plan. ... The LIC New Jeevan Anand Plan offers tax exemption on the amount of premium paid under Section 80C and the claim amounts i.e. Death or Maturity Benefit under Section 10(10D) of the Income Tax Act, 1961.

Can I pay LIC premium for others?

Under the policies registered under NACH mode, premium cannot be paid through any other payment channel except in case of NACH dishonor.