Thursday, March 12, 2015

TAX SAVING SCHEME ON LIFE INSURANCE POLICIES (LIC)

TAX SAVING SCHEME ON
LIFE INSURANCE
 POLICIES (LIC)
• Variety of Plans available.
• Major Benefit: Life Risk Cover. 
• Encourages to save compulsorily. 
• Besides covering life risk, gets tax benefit both at entry (premiums paid) & exit point (Maturity + Bonus). 
• Asset is created without having one. 
• Tax Exemption: Eligible u/s 80C for overall Investment upto Rs.1.5 lakh & maturity amount (Investment + Bonus) is totally exempt u/s 10(100). For policies taken on or after 1.4.2003, prem. exceeding 20% of the S. A. & policies taken on or after 1.4.2012 prem. exceeding 10% of the S.A. in any year, will not enjoy tax free returns uls 10 (10 D) or benefit u/s 80C.