Is LIC under 80C?

Asked by: Dr. Rolando O'Reilly MD  |  Last update: July 21, 2023
Score: 4.5/5 (3 votes)

The tax benefits provided on the payment of LIC premium comes under section 80C of Income Tax Act, 1961.

Is LIC eligible for 80C deduction?

Premium on life insurance policy can be claimed as deduction under section 80C. In case of an individual, deduction is available in respect of policy taken in the name of taxpayer or his/her spouse or his/her children.

Is LIC exempt from income tax?

All tax exemption for payment of LIC premiums are offered as per section 80C of the Income Tax Act, 1961.

What are comes under 80C?

Any contribution towards Public Provident Fund (PPF) can be filed for tax deduction under Section 80C. Public Provident Funds come with a maximum deposit limit of Rs. 1,50,000, allowing an investor to claim the entire deposited amount as an exemption under this Income Tax act.

Is LIC good for tax saving?

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.

How does LIC policy Works and Its Benefit for Tax Deduction Under Section 80C

31 related questions found

Does LIC come under 80CCC?

The Section 80CCC deals with tax deductions on annuity plans from the Life Insurance Corporation of India (LIC) and other insurers. The section provides for tax deductions up to a maximum of Rs. 1 lakh per year on expenses incurred in buying a new policy or continuing an existing policy that pays pension.

How much LIC premium is tax deductible?

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. Under section 80CCC, the maximum amount of deduction that can be claimed is limited to Rs 1,50,000/-.

What comes under 80C and 80D?

Section 80C offers tax deductions on different types of tax-saving investments, such as ULIP, PPF, ELSS, EPF, LIC premium, etc. Section 80D deduction is allowed for availing tax exemptions on health insurance premiums paid for self, family, & parents and expenses incurred on preventive health check-ups.

Is 5 year FD tax free?

One can claim an income tax deduction by investing money in a five-year FD scheme under Section 80C of the Income Tax Act, 1961. The features, benefits, and terms associated with this type of account may not be completely the same as the normal FD accounts.

How can I reduce my taxable income?

  1. Contribute to a Retirement Account.
  2. Open a Health Savings Account.
  3. Check for Flexible Spending Accounts at Work.
  4. Use Your Side Hustle to Claim Business Deductions.
  5. Claim a Home Office Deduction.
  6. Rent Out Your Home for Business Meetings.
  7. Write Off Business Travel Expenses, Even While on Vacation.

Is PPF covered under 80C?

PPF contributions made every year are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The deductions can be claimed by anyone for the same limit.

What is 80C 80CCC and 80CCD?

80CCC Deduction for life insurance annuity plan. 80CCC allows deduction for payment towards annuity pension plans Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt. 80CCD (1) Deduction for NPS.

How can I save my tax except 80C?

Best 10 Tax Saving Investment Options Other Than 80C
  1. Tax saving with NPS under Section 80CCD (1B): ...
  2. Tax savings on Health insurance premiums under Section 80D: ...
  3. Tax savings on repayment of an Education loan under Section 80E: ...
  4. Tax savings on Interest component of Home loan under Section 24:

Is 80D included in 1.5 lakh?

Section 80D and 80C

Section 80C provides deductions up to Rs. 1.5 lakhs per year while Section 80D offers deductions up to Rs. 65,000, subject to conditions.

Is 80C and 80CCC same?

The main difference between Section 80C and Section 80CCC of the Income Tax Act of 1961 is that under Section 80C, the amount to be paid may come from income that is not chargeable to tax. While under Section 80CCC the funds must be paid out the income that is chargeable to tax.

Which LIC policy comes under 80CCD?

Individuals can contribute to National Pension Scheme (NPS) and claim an additional tax deduction of up to ₹50,000 under Section 80CCD(1B) of the Income Tax Act. The deduction is exclusive to NPS contributions and LIC plans do not qualify for tax deduction under this section.

Can I claim both 80CCD 1B and 80CCD 1?

Section 80CCD deductions can be claimed for both NPS and Atal Pension Yojana contributions. The total deduction limit for Sections 80C + 80CCC + 80CCD(1) + Section 80CCD(1B) = ₹ 2,00,000. An additional deduction of ₹ 50,000 can be claimed under Section 80 CCD(1B) for self-contributions made to NPS or APY.

Is NPS under 80C or 80CCD?

An additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under section 80C of Income Tax Act.

What income is tax free?

If your income is below ₹2.5 lakh, you do not have to file Income Tax Returns (ITR).

How can I save tax if I earn 10 lakhs?

How to Save Tax for a Salary Above Rs 10 Lakhs?
  1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD) ...
  2. Additional Reduction of Up To Rs 50,000 for NPS Investors (Section 80CCD. ...
  3. Reduce Your Taxable Income by Up To Rs 75,000 (Section 80D) ...
  4. Reduce Your Taxable Income by Up To Rs 2 lakhs (Section 24)

Is PPF interest taxable?

As per provisions of section 10(11) of the I-T Act, interest accrued in PPF account where annual contribution does not exceed ₹5 lakh shall not be taxable.

Is RD tax free?

Is RD interest taxable?: Recurring Deposits attract no tax exemptions. Income tax has to be paid on the Interest amount received from Recurring Deposits. The tax has to be paid at the rate of the tax slab of the RD holder.

Can 80c FD be broken?

Can we break tax saving FD? No. Premature withdrawals of tax-saving FDs are not allowed. According to the Bank Term Deposit Scheme 2006, you cannot break these FDs before the five-year expiry.