What is 80C and 10 10D?

Asked by: Stacey Kemmer  |  Last update: February 11, 2022
Score: 4.6/5 (35 votes)

Section 80C offers deductions of up to Rs. 1.5 lakh on life insurance premiums paid in a particular year. Section 10(10D) specializes in offering tax deductions on claims, i.e. death and maturity benefit, which includes all forms of accrued bonuses against the respective life insurance policies.

What is Section 10 10D of Income Tax?

Under Section 10(10D), the amount of sum assured and any bonus or policy proceeds that are paid on the maturity or the surrender of the policy or on the death of the insured individual are entirely tax-free for the beneficiary.

How do I claim exemption under 10 10D?

Exemption u/s 10(10d) is available on the amount received under a life insurance policy which includes death benefits, maturity benefits, and accumulated bonus. There is no limit on the amount of exemption - the entire amount received is exempt under this section.

What is 80C benefit?

80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax ...

What is 80C document?

List of investments u/s 80C - Life Insurance Premium receipts. Deffered Annuity receipts. N.S.C. Accrued Interest receipts. Provident Fund contrition receipts.

LIP Benifit of Section 80C & sec. 10(10D)

26 related questions found

Is 80CCD part of 80C?

Sections 80CCD, 80CCC and 80C

The benefits of Section CCD fall under those of 80C, i.e., the deductions claimed u/s 80CCD cannot be claimed again in 80C. The overall limit of deductions under 80C, 80CCC and 80CCD is Rs. 2 lakh, with an additional deduction of Rs. 50,000 allowed u/s 80CCD sub section 1B.

What investment comes under 80C?

Tax saving options under Section 80C
  • Equity Linked Saving Scheme (ELSS)
  • National Pension Scheme (NPS)
  • Unit Linked Insurance Plan (ULIP)
  • Public Provident Fund (PPF)
  • Sukanya Samriddhi Yojana (SSY)
  • National Savings Certificate (NSC)
  • Fixed Deposit (FD)
  • Employee Provident Fund (EPF)

Is life insurance covered under 80C?

If you have bought life or term insurance, then the payments made towards premiums can be claimed under Section 80C of Income Tax Act, 1961. For this, the insurance can be in your name or your wife and child's name. The total amount that can be claimed for exemption should be 10% of the sum assured.

Is term insurance covered under 80C?

You must pay the premium to receive term insurance tax^ benefits under Section 80C. The tax benefit applies to the total premium you pay in a financial year. When you stop premium payment, your term plan terminates, and your life cover ceases to exist.

Is mutual fund under 80C?

No, all mutual funds do not qualify for tax deductions under Section 80C of the income tax Act, Only investments in equity-linked saving schemes or ELSSs qualify for tax deduction under section 80C. Investors can invest in ELSSs and claim tax deductions of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.

Is 10D under 80C?

Section 80C offers deductions of up to Rs. ... Section 10(10D) specializes in offering tax deductions on claims, i.e. death and maturity benefit, which includes all forms of accrued bonuses against the respective life insurance policies.

Is ULIP tax free?

Both ULIP and National Savings Certificate (NSC) provides tax benefit u/s 80C of the Income Tax Act, 1961. Investments made in ULIPs of up to Rs. 1.5 lakh are eligible for tax deduction under the overall limit offered under Section 80C.

What is under Section 10D?

What is section 10D? Under Section 10D of the Income Tax Act, 1961, an individual can avail tax exemption on the sum assured and accrued bonus (if any) received through their life insurance policy claim (maturity or death benefit).

What is it Rule 10D?

Information and documents to be kept and maintained under section 92D . any other information, data or document, including information or data relating to the associated enterprise, which may be relevant for determination of the arm's length price.

What is section 10 exemption in income tax?

Section 10 for salaried employees under the Income Tax Act covers a wide range of allowances ranging from house rent and leave travel allowance to research/academic allowance and uniform allowance. ... Allowances are given to employees for their services or as compensation for working in unusual conditions.

What is the difference between 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 term insurance a good idea?

A term insurance plan will help the family to meet their day to day expenses and accomplish the long-term financial goals too. Yes, it is worth buying a term insurance policy no matter what year it is. When compared to other types of life insurance products, a term insurance policy is much beneficial.

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 reduce my income tax other than 80C?

How to save tax other than section 80C?
  1. 80D- for medical insurance premium for self, spouse & dependent parents.
  2. Section 80EE – Deduction for interest payment of home loan for first home owners.
  3. Section 24- Interest deduction for housing loan upto Rs 2 lakh.

How much should I invest in 80C?

Investments of up to Rs 1.5 lakh can be used to avail tax deductions under Section 80C. An additional Rs 50,000 can also be invested in the NPS for tax deductions under Section 80CCD(1B).

Where can I put my money to avoid taxes?

  • Invest in Municipal Bonds.
  • Take Long-Term Capital Gains.
  • Start a Business.
  • Max Out Retirement Accounts.
  • Use a Health Savings Account.
  • Claim Tax Credits.

What investments are tax free?

Listed below are tax free investments that meet a variety of needs and financial goals:
  • Life Insurance. Rs. 1,50,000 (Rs 1.5 lakhs) ...
  • PPF (Public Provident Fund) Rs. 1,50,000 (Rs 1.5 lakhs) ...
  • NPS (New Pension Scheme) Rs. 1,50,000 (Rs 1.5 lakhs) ...
  • Pension. Rs. 1,50,000 (Rs 1.5 lakhs) ...
  • Life Insurance. Rs. 1,50,000 (Rs 1.5 lakhs)

What is NPS 80CCD?

Section 80CCD relates to the deductions available to individuals against contributions made to the National Pension Scheme (NPS) or the Atal Pension Yojana (APY). Contributions made by the employers towards the NPS, also come under this section. NPS is a notified pension scheme from the Central Government.