CA_Amit
12-02-2010, 10:44 PM
March 31st is approaching and everyone is investing to save tax. Just wanted to share some points with you on Sec 80C, 80CCC, 80D for tax purpose -
Life Insurance premium
Any Premium in excess of 20% of sum assured is not eligible for tax rebate under sec 80C. E.g. You have policy of sum assured Rs. 4,00,000/- and you are paying premium every year Rs. 85,000/-. Than you can claim maximum up to Rs. 80,000/- under section 80C. So invest in life insurance after keeping in mind the above rule.
ULIPs
If you are looking for tax rebate under ULIPs policies, than you must note that you have a lock-in period of 5 years for 80C deduction purposes. So next time if any sales person tell you that just invest for 3 years, get good return and exit after 3 year. Think twice. Taxman will catch you.
Health Insurance Premium
The annual deduction under sec 80D is of Rs. 15,000/- from taxable income for payment of Health Insurance premium for self, spouse, children. For senior citizens, the maximum deduction is Rs. 20,000/-.
Pension Funds
The aggregate deduction under Sec. 80C and the contributions to annuity plans or pension funds under Sec. 80CCC or Sec. 80CCD should not exceed Rs. 1 lakh.
The maximum amount deductible under section 80C is Rs. 1,00,000. Also the total amount of deductions under sections 80C, 80CCC and 80CCD is Rs. 1,00,000.
Surrender value
Surrender value received is taxable in the year of receipt in the hands of the assessee or nominee.
Life Insurance premium
Any Premium in excess of 20% of sum assured is not eligible for tax rebate under sec 80C. E.g. You have policy of sum assured Rs. 4,00,000/- and you are paying premium every year Rs. 85,000/-. Than you can claim maximum up to Rs. 80,000/- under section 80C. So invest in life insurance after keeping in mind the above rule.
ULIPs
If you are looking for tax rebate under ULIPs policies, than you must note that you have a lock-in period of 5 years for 80C deduction purposes. So next time if any sales person tell you that just invest for 3 years, get good return and exit after 3 year. Think twice. Taxman will catch you.
Health Insurance Premium
The annual deduction under sec 80D is of Rs. 15,000/- from taxable income for payment of Health Insurance premium for self, spouse, children. For senior citizens, the maximum deduction is Rs. 20,000/-.
Pension Funds
The aggregate deduction under Sec. 80C and the contributions to annuity plans or pension funds under Sec. 80CCC or Sec. 80CCD should not exceed Rs. 1 lakh.
The maximum amount deductible under section 80C is Rs. 1,00,000. Also the total amount of deductions under sections 80C, 80CCC and 80CCD is Rs. 1,00,000.
Surrender value
Surrender value received is taxable in the year of receipt in the hands of the assessee or nominee.