Tax Centre
Payments under Life Insurance and Pension plans are eligible for tax exemption as per the Income Tax Act 1961 (Act).
* Premiums paid under a life insurance policy are eligible for deduction under Section 80C* of the Act.
* Contributions to a pension plan are eligible for deduction under Section 80CCC* of
the Act.
* The proceeds under a life insurance policy are exempt under Section 10(10D) of the Act, subject to the provisions of the said section.
*As per the prevailing law, the aggregate amount of deduction under section 80C, 80CCC and section 80CCD shall not exceed one lakh rupees.
Please Note: The above information only provides a general overview of some aspects of the tax laws applicable to life insurance/pension plans. Please consult a tax advisor before taking any action.
Service Tax:
Service tax and education cess will be additionally charged to the policyholder on the applicable charges/premium as notified by the Government of India from time to time.
