Insurance Tax Benefits in India
If you fall under the income tax criteria, you can calculate your tax by checking the insurance. In India, under Section 80C, you can deduct life insurance premiums from tax up to a maximum of 1,50,000 rupees. You can also deduct health insurance premiums from tax up to a maximum of 75,000 rupees under Section 80D.
What is Section 80C?
Section 80C is a provision in the Tax Code that allows individuals to deduct a portion of their taxable income provided they invest in certain areas. The total amount you can deduct under Section 80C is limited to 1.5 lakh. This includes investments in provident funds such as EPF, PPF, payment for life insurance premiums, Equity linked Saving plans, repayment of home loans, SSY, NSC, SCSS, among others Investments.
What is Section 80D?
Section 80D is a provision in the Indian Internal Revenue Code that allows taxpayers to deduct a portion of their taxable income by offsetting it against premium payments for health insurance and preventive care expenses. Under the tax code, you can claim these deductions even if the payments are made for your spouse, dependent children, or parents. You can deduct health insurance premiums up to a maximum of 75,000 rupees under Section 80D.