Quick Answer: Can We Claim Spouse LIC In 80c?

Can HUF claim LIC 80c deduction?

The investment in life insurance can be deducted up to Rs 1,50,000.

Apart from several other items provided under section 80C, a taxpayer, being an individual or a Hindu Undivided Family (HUF), can claim deduction under section 80C in respect of premium on life insurance policy paid by him/it during the year..

Who is eligible for 80c deduction?

Among the various tax-saving options, most individuals prefer to claim tax deduction under Section 80C of the Income Tax Act, 1961. Section 80C allows individuals and HUFs to claim tax deduction of up to Rs. 1,50,000 from their gross total income for certain investments and payments.

What is 80c and 10 10d?

Under section 80C, premiums that you pay towards a life insurance policy qualify for a deduction up to ₹1.5 lakh, while Section 10(10D) makes income on maturity tax-free if the premium is not more than 10% of the sum assured or the sum assured is at least 10 times the premium. … In the example, your deduction will be Rs.

Can I invest more than 1.5 lakhs in 80c?

Your total investment upto 1.5 lakhs will only be allowed as deduction u/s 80C. The additional contributions do not have any problem from tax point of view, except that you cannot claim deduction u/s 80C on them.

Is LIC tax free on maturity?

Section 10(10)D of the Income Tax Act, 1961 As per Section 10(10D) of the Income Tax Act, 1961 the amount of sum assured plus any bonus (i.e. the policy proceeds) paid on maturity or surrender of policy or on death of the insured are completely tax free for the receiver subject to certain conditions.

Is 80c applicable in new tax regime?

Under the new tax regime, an individual cannot avail tax benefit under section 80C on the contribution made to his/her PPF account. … Further, any maturity amount received from the PPF account will be exempted from tax in the new tax regime.”

Is life insurance covered under 80c?

As per Section 80C(2) of the Income Tax Act, 1961, any amount paid to an insurer to buy or to keep a life insurance policy in force can be claimed as a deduction from gross total income by the policy holder.

Is term plan tax free?

Term insurance tax exemption under Section 10(10D) As per Section 10(10D) of the Income Tax Act, the sum assured received on maturity or surrender of a policy or upon the policyholder’s death is completely tax-free.

Can I pay LIC premium for my wife?

Under Section 80C of the Income Tax Act, any amount paid by a policyholder towards life insurance premium for self, spouse or his/her children can be claimed as deduction from taxable income. … If a person is paying premium for more than one insurance policy, all the premiums can be included.

Is LIC safe now?

Refuting claims of its weak financial position, national insurer Life Insurance Corporation (LIC) on Wednesday assured its millions of policyholders that their money is safe and secure as its “financial health is sound. ‘

How much LIC premium is tax deductible?

Income tax deduction on investment Premium paid towards life insurance policies qualifies for deduction under Section 80C, up to a maximum of Rs 1.5 lakh a year.

Is LIC removed from 80c?

Tax exemptions are an important incentive for purchase of life insurance. … But now, those who opt for the new tax regime will not be eligible to claim any deduction under Section 80C.

What is the 80c limit for 2020 21?

Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens. Section 80DD: ₹ 75,000 for disabled dependent or ₹1,25,000 for severely disabled dependent.

How do I deduct 80c?

You can claim a deduction of Rs 1.5 lakh your total income under section 80C. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income, and it is available for individuals and HUFs. If you have paid excess taxes, but have invested in LIC, PPF, Mediclaim, paid your children’s tuition fees etc.

Can we claim GST on LIC?

Will GST be allowed for tax benefit “Yes, the total amount paid towards health and life insurance (including the GST paid on such insurance premium) qualifies for deduction under Section 80D and Section 80C respectively.

Which LIC policy is best for tax benefit?

4. LIC New Jeevan Anand PlanLIC Jeevan Anand PlanParticipating Traditional Endowment PlanSum Assured (Min-Max)Rs. 1 lakh-No LimitLoan FacilityAvailableOptional BenefitsLIC accidental death benefit or disability benefit. LIC’s New Term Assurance RiderTax BenefitAvailable under the Section 80C of the Income Tax Act, 19611 more row

Is LIC safe after Budget 2020?

The government plans to sell part of its holding in Life Insurance Corporation of India through an initial public offering as it set a record disinvestment target for 2020-21. More so, after it estimates to miss its FY20 disinvestment target by more than a third. …

Is LIC maturity amount taxable?

When the premium paid on a policy exceeds 10% of the sum assured for policies issued after 1 April 2012, and 20% of the sum assured for policies issued before 1 April 2012, any amount received on maturity of a life insurance policy is fully taxable.

What 80c covers in income tax?

Subsections of Section 80CTax saving sectionsEligible investments for tax exemptionsSection 80CInvestments in Provident Funds such as EPF, PPF, etc., payment made towards life insurance premiums, Equity Linked Saving Schemes, payment made towards the principal sum of a home loan, SSY, NSC, SCSS, etc.4 more rows

Is ELSS tax free?

Better post-tax returns: Except PPF and NPS, ELSS offers better post-tax returns than other 80C investments because long term capital gains of up to Rs. 1 lakh a year from ELSS mutual funds are exempt from income tax and long-term capital gains above Rs. 1 lakh are taxed at 10%.

What is Section 10 26aaa income tax?

The section 10(26AAA) covers the income of a Sikkimese individual which is arising either in the state of Sikkim or by way of dividend or interest on securities, is not to be included in total income for tax calculation.