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Allowances or Exemptions available For Salaried For A. Y. 2018-19

Every taxpayer who are liable to file Income Tax Return under the head Salary do knows very well that what are the allowances / exemptions available under the head salary that help them to save tax 



Here we have made an efforts to Summarize all Allowances /Exemptions available 
under the head Salaries of Tax Payers for AY 2018-19 [ F Y 2017-18]

Allowances / Exemptions Under the head Salaries :
Sl. No. Section Particulars Limit of Exemptions Exemption Available To
1 10(7) Any allowance or perquisite paid or allowed by Government to its employees posted outside India Entire Amount Individual- Salaried Employee (being a citizen of India)
2   -  Allowances to Judges of High Court/Supreme Court Exempt, subject to certain conditions Individual – Judges of High Court/Supreme Court
3   -  Compensatory allowance received by a Judge under article 222(2) of the Constitution Fully Exempt
4   -  Salary and allowances received by a teacher /professor from SAARC member state (Subject to certain conditions). Fully Exempt
5 10(45)
Following allowances and perquisites given to serving Chairman/Member of UPSC is exempt from tax:
a) Value of rent free official residence
b) Value of conveyance facilities including transport allowance
c) Sumptuary allowance

d) Leave travel concession
Fully Exempt
6 10(45) Allowances to Retired Chairman/Members of UPSC Exempt subject to maximum of Rs. 14,000 per month for defraying the services of an orderly and for meeting expenses incurred towards secretarial assistant on contract basis.
7    - 
Allowances paid by the UNO to its employees
Fully Exempt Individual – Government employee
Individual – Employees of UNO
8 16 (ii)
Entertainment Allowance received by the Government employees (Fully taxable in case of other employees)
Least of the following is exempt from tax:
a) Rs 5,000
b) 1/5th of salary (excluding any allowance, benefits or other perquisite)
c) Actual entertainment allowance received
Individual – Government Employee
9 10(13A) House Rent Allowance (Sec. 10(13A) & Rule 2A)
Least of the following is exempt:
a) Actual HRA Received
b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras)
c) Rent paid minus 10% of salary
* Salary= Basic + DA (if part of retirement benefit) + Turnover based Commission
Note:
i. Fully Taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent
ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08 /2013 dated 10th October, 2013].
Individual – Salaried employee
10 10(14) Children Education Allowance Up to Rs. 100 per month per child up to a maximum of 2 children is exempt Individual – Salaried employee
11 10(14) Hostel Expenditure Allowance Up to Rs. 300 per month per child up to a maximum of 2 children is exempt Individual – Salaried employee
12 10(14) Transport Allowance is granted to an employee to meet expenditure on commuting between place of residence and place of duty Up to Rs. 1,600 per month (Rs. 3,200 per month for blind, deaf, dumb and handicapped employees) is exempt Individual – Salaried employee
13 10(14) Allowance granted to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance
Amount of exemption shall be lower of following:
a) 70% of such allowance; or
b) Rs. 10,000 per month
Individual – Salaried employee
14 10(14) Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office Exempt to the extent of expenditure incurred for official purposes Individual – Salaried employee
15 10(14) Any Allowance to meet the cost of travel on tour or on transfer Exempt to the extent of expenditure incurred for official purposes Individual – Salaried employee
16 10(14) Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty Exempt to the extent of expenditure incurred for official purposes Individual – Salaried employee
17 10(14) Helper/Assistant Allowance Exempt to the extent of expenditure incurred for official purposes Individual – Salaried employee
18 10(14) Research Allowance granted for encouraging the academic research and other professional pursuits Exempt to the extent of expenditure incurred for official purposes Individual – Salaried employee
19 10(14) Uniform Allowance Exempt to the extent of expenditure incurred for official purpose Individual – Salaried employee
20 10(14) Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations) Amount exempt from tax varies from Rs. 300 per month to Rs. 7,000 per month Individual – Salaried employee
21 Sec. 10(14) read with Rule 2BB Border area allowance Remote Locality or allowance or Disturbed Area allowance or Difficult Area Allowance (Subject to certain conditions and locations) Amount exempt from tax varies from Rs. 200 per month to Rs. 1,300 per month Individual – Salaried employee
22 Sec. 10(14) Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa Up to Rs. 200 per month Individual – Salaried employee
23 Sec. 10(14) Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) Up to Rs. 2,600 per month Individual – Salaried employee
24 Sec. 10(14) Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) Up to Rs. 1,000 per month Individual – Salaried employee
25 Sec. 10(14) Counter Insurgency Allowance if this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and   locations) Up to Rs. 3,900 per month Individual – Salaried employee
26 Sec. 10(14) Underground Allowance is granted to employees working in uncongenial, unnatural climate in underground mines Up to Rs. 800 per month Individual – Salaried employee
27 Sec. 10(14) High Altitude Allowance is granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)
a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet)
b) Up to Rs. 1,600 per month (for altitude above 15,000 feet)
Individual – Members of Armed Forces
28 Sec. 10(14) Highly active field area allowance is granted to members of armed forces (Subject to certain conditions and locations) Up to Rs. 4,200 per month Individual – Members of Armed Forces
29 Sec. 10(14) Island Duty Allowance is granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations) Up to Rs. 3,250 per month Individual – Members of Armed Forces
30   -  City Compensatory Allowance Fully Taxable Individual – Salaried employee
31   -  Fixed Medical Allowance Fully Taxable Individual – Salaried employee
32   -  Tiffin/Lunch/Dinner/ Refreshment Allowance Fully Taxable Individual – Salaried employee
33   -  Servant Allowance Fully Taxable Individual – Salaried employee
34   -  Dearness Allowance Fully Taxable Individual – Salaried employee
35   -  Project Allowance Fully Taxable Individual – Salaried employee
36   -  Overtime Allowance Fully Taxable Individual – Salaried employee
37   -  Telephone Allowance Fully Taxable Individual – Salaried employee
38   -  Holiday Allowance Fully Taxable Individual – Salaried employee
39   -  Any Other Cash Allowance Fully Taxable Individual – Salaried employee
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Insurance Premium Saving Factors !

Friends asks, how to save insurance premium? What are the way to save insurance premium? How I can save insurance premium? What are the factors that affect insurance premiums? Hope many of us always thinking about this. And always ask our Insurance Agent friends. 
A Lower premium paid can yield to a good amount of savings over a period of few years. Life insurance premiums are based on number of factors and it can be quite tedious for few people to understand. Like why insurance premium of  same same are not same? Why premium of same age & same amount not same? etc..
There are some factors that many insurance companies consider when pricing their policies. Those factors can effect your life insurance premium which not in our control but we can.
There are some factors listed below which affect our life insurance premiums are:

Insurance Premium Saving Factors.a) Age Factor: This is factor always affects insurance premium. If you are young the rates will be lower in comparison to someone older. The death possibility or contract to life threatening disease in younger individual are very low. The insurance companies believes that a young can pay many insurance premium installments before they have to write a cheque for your family.

b) Policy Type Factor: Different type of policy charges different types of life insurance premium for the same person for same tenure and same Sum Assured. It differs the bonus amount/ Loyalty Amount payable on that policy. Like Premium of New Jeevan Anand Policy and New Endowment Policy of 21 year old person for 20 years terms are differ.  

c) Policy Tenure Factor: The policy tenure also affects insurance premium. The longer the tenure of the policy the larger the amount of benefit at the time of death as well as lower premium amounts. Short term policy are more expensive than of long term insurance policy.

d) Rider Factors: Some policy offers riders on that particular policy. If someone opt this rider than its premium amount become higher than without rider. So when you opt it think about it.

e) Medical History Factor: Every person who like have an insurance policy need to provide their health records.These records ensures that you don't have any chronic diseases or potential health issues. This keeps a check on your premium amount.  
But if a person has medical history of serious illness like cancer, heart diseases or any other then that makes them susceptible to get these from a hereditary perspective. Which increases the individuals insurance premium by larger margin than.

f) Profession Factor: Your profession/job also plays an important role in the premium you pay for the policy you want to take. Any policy holder working in the mining industry, oil And gas, fisheries or any other dangerous profession increases the premium amount.

g) Hobby Factor: Many insurers have a higher premium for people who love to takes risks for the thrill of it, like speeding cars / car race, climbing treacherous mountains or participates in other high risks activities. Thereby increasing your premium to substantially more than other.

h) Drinking / Smoking: Insurance companies ensure to ask the applicant if they are smoker or drinker. Drinking or smoking is always injurious to health. So if you are a smoker / drinker that raises red flag to insurance companies. Mostly these kind of people pays double the insurance premium than that of non-smoker/drinker. So, avoid it.

i) Gender Factor: Insurance companies ask for your gender. This does not mean insurance companies are against gender equality, But they believes that there is a different life expectancy for different genders. As per studies and statistical findings, women are believed to live 5 years more than men at the minimum resource. Therefor affecting the premium they pay for a larger period of time but at lower rate which is a plus point for the women.
How these factors affect your insurance premium is depends on the insurance company policy about the way they treat these factors and the combination of them. Every insurance policy is based on each individual and premiums are calculated on the insurance company's rules of rating.

Consider these above factors to live a health life and save money.



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Notice For Modification of LIC Jeevan Akshay - VI (Plan No.189)

Today LIC has issued a Notification regarding Modification of LIC's Jeevan Akhay - VI (Plan no.189) (UIN:512N234V05). Read Complete Notification here as-

LIFE INSURANCE CORPORATION OF INDIA
CENTRAL OFFICE

Dept: Product Development                 "Yogakshema"
                                        Jeevan Bima Marg.
                                        Mumbai - 4000021
                                       24th November, 2017

Ref: CO/PD/100

To
All HODs of Central Office
All Zonal Offices,
All Divisional Offices
All Branch Offices (Through D.O's)
MDC, ZTCs, STC, NIA and
Audit & Inspection Depts. of Zonal Offices


Re: Modification of LIC's Jeevan Akshay -VI (Plan No. 189)(UIN:512N234V05)

This is to inform that the current annuity rates applicable to individual annuities under LIC's Jeevan Akshay -VI (UIN:512N234V05) will not be available with effect from 01.12.2017

Notice-of-Modification-of-Jeevan-Akshay-VI-(Plan No.189)The existing annuity rates would apply on all proposals with full premium received proposals registered and also completed as on 30.11.2017 or before. The annuity rates of LIC's Jeevan Akhshay-VI (UIN:512N234V05) will be revised with effect from 01.12.2017. The revised annuity rates would apply on all proposals registered and / or completed from 01.12.2017.

Therefore, all our offices are requested to ensure that all the proposals received under this plan LIC's Jeevan Akhshay-VI (UIN:512N234V05) on or before 30.11.2017 are completed as at 30.11.2017. For any incomplete proposal even if registered on or before 30.11.2017 but not completed on a date before or as at 30.11.2017, revised annuity rates would apply.

For the proposals completed before or as at 30.11.2017, in case of cheque dishonour and sbsequent receipt of money and completion of such cases after 30th November 2017, revised annuity rates would apply.

[Signature]
Executive Director (Marketing & Product Develpment)

FAQ
What is LIC's Jeevan Akhshay-VI (Plan No. 189) (UIN:512N234V05) ?
It is an immediate Annuity Plan. It is one time investment with Life Time Return Pension Plan applicable with next Month, Quarterly, Half Yearly or Yearly.

Can we Surrender Jeevan Akshay VI (Plan -189) ?
Yes! You can Surrender Jeevan Akshay -VI after one year and get back your money with OPTION-F

What are the Special Features of Jeevan Akshay VI (Plan -189) ?
There are lots of special feature this plan has. Some of them are listed below :
1> It Does Not Effect Your Pension Amount inspite of regular changing in Bank's FD Rate
2> After Policy Holder All Money Will Be Returnable to Nominee. 
3> Available Pension Option of Monthly, Quarterly, Half-yearly And Yearly
4> Pension Available From Just Next Month 
5> Minimum Entry Age 30 Years, Maximum Entry Age 85 Years
6> Minimum Investment Limit - 1 Lakh, Maximum Investment Limit - No Limit
7> Direct Credit of Pension Into Your Bank Account.
8> After Death of Husband & Wife All Amount Returnable to Next Legal Successor (Option-J)



ACT  NOW. NO TENSION ONLY PENSION

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How To Check Income Tax Refund Status ?

Did you file your income tax return for the assessment year? Does it has any Refund amount ! And you did not receive your refund yet. Here I am telling you how to check Income Tax Refund online.

First you have get register yourself at Income Tax efiling Website with details like PAN No. Name of the Assessee (As per PAN Card); Date of Birth; Mobile No. and Email ID.

Check your ITR, Is there are any Refund Amount as per your income tax return? Then you need to LOGIN Income Tax efiling website. Go to click My Account  drop down and check Return/Form 
How-To-Check-Income-Tax-Refund-Status
Check if it is processed or not. If it is yes then then check Refund/Demand Status in My Account tab. It will redirect to Tin-NSDL Website. Fill all details and get the status.
Tin-NSDL-Income-Tax-Refund-Status

Fill all Details like your PAN No. and select Assessment Year & fill Captcha Code of which you want to check your Income Tax Refund Status. 

If it is showing that Refund processed but you have not received any refund cheques/ ECS then again LOGIN Income Tax efiling website. You can only raise a request of Refund Re-issue if your refund failed to reach you and was return to Income Tax Department. Go to My Account  drop down Select REFUND RE-ISSUE REQUEST
Income-Tax-Refund-Re-Issue-Request


Select the mode of Refund you want to receive, if selected ECS then provide your correct bank account details or if wish to receive thru DD/Banker's Cheque then provide correct address. If your address has been changed then update your Contact Details at Profile Setting tab. 
Hope the above will help you to track your Income Tax Refund Status. You can track directly here, CLICK HERE.



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How Much Insurance Do I Need !!!

Do all of us require life insurance?? My answer is "YES" Because, Health of elderly parents, Education of Children and life of Spouse are put under a big question mark when bread earner dies. Not only losing the loved ones, most of the times families get into serious financial crisis. Now the question is " How Much Life Insurance Do I Need To Secure My Family?" But first you realize that whether you need any life insurance to take. If so, then here are some parameters on calculating how much life insurance you really need.

1. Earning Power: Life insurance amount must cover at-least the earning power of the person. For Example you earn Rs.50 thousand per month then your expenses ratio would around this amount. Now if something happens, interest income from insurance policy claim proceeds must be around or more than Rs.50 thousand, considering the fluctuation in money value due to inflation.

2. Dependents: If you are young and single you do not worry much about this. Mostly liability started arise once you get married. But after marriage this is must. Your Spouse and your children or your parents requires it more in your absence, because they depends on you.  If you are only earner in the family then you need higher insurance coverage.

3. Having Loan: If you have some loan/debt then the policy coverage must be higher to cover your loan/debt amount. Imagine the situation when the person had a bulk house loan to pay and there is no earner. Remember when you have loans or other debts, consider taking a policy with higher coverage after checking your affordability to pay the premium along with EMI.

Life insurance is not necessary if you do not dependents. Having surplus resources to take care of dependents. No debts/Loan, You are single and just started earnings.

There are some basics to check it like Take all your insurance policies and calculate total insurance cover you have. Now analyze and compare it with your earning in your absence and ask yourself "will this amount fulfill / protect family's lifestyle forever in my absence". If your earning does not allow much to take regular insurance cover then go for some Term Insurance.

Calculate and take the right insurance cover for you and protect your family's lifestyle forever. 
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Life After Life With Life Insurance

Life-After-Life-With-Life-Insurance
One of my client asked me "why every alternate day an LIC Agent came to me and asked to buy an insurance policy? How I can buy if not able save to afford premium amount? I ask him just to imagine "you are the head of the family and only earning member. You have a good job, own flat, kids taking education in good school. But suppose unfortunately you are no more or no-more earning as now, then............. " that person silence for some time. Again I asked can you again imagine that your family can live without you as comfortable as now. They need money to fulfill their needs even in your absence... so we people come and tell you to do some for future cash requirement.
Always remember loss of an income always creates a dent in the financial plans of any family, and if that income is the only income, the damages can be very severe.
Nothing can be done to compensate for the emotional loss of the family. But we do something to take care of them financially when we are not there.
Therefore we can secure our family's financial future by buying a life insurance policy. Besides do not overlook benefits of a life insurance during your lifetime, especially if you are young. Here  I am listing some reasons for buying Life Insurance Policy.
1. Life After Life : As I illustrated above there are life after your life who need money to survive and fulfill their requirements. They are your dependent spouse, your child, your mother-father whom you love so much.
2. Supplements for your Retirement Goals: With a life insurance plan, you can ensure you have a regular stream of income every month till you survive. So, invest some money in  Pension Fund scheme.
3. Tax Saving Purpose: The premium you pay on an insurance policy is eligible for maximum tax benefit upto Rs.1.50 Lakh under section 80C. And give you a tax free return at the time of Maturity or death under section 10(D) of IT Act, 1961. So, you can save tax with insurance policies irrespective of what plan you buy. 
4. Peace of Mind: We all knows death is unavoidable. Atleast you can do this for your family to secure their financial future. Even if it is a small policy, you know that you have done all you can.
5. Forced Saving Tools: If you are not able to invest thou this investment forcefully ask you to save some money for future. If you choose a traditional or ULIP policy, you pay a premium each month, means each month savings.
6. Delay Cost More: Life insurance policy run on uncertainties. Now you are healthy so you can buy a life insurance but if you are ill your policy may be rejected. Buying life insurance early is cheaper than buying later. 
7. Helpful in Debt-dealing: If you have any home loan or car loan, you must not want your family to deal with financial liabilities during a crisis. Any outstanding debt either home loan, auto loan, personal loan or credit card outstanding will be taken care of if you have right (amount) insurance policies.
8. Fulfill Long-Term Goal: Life insurance a tool for long-term investment. It may help you to achieve your future goals such as buying home, fund for higher education of your child.

Using life insurance as an investment tool might make sense for some people in some situations - usually high net-worth individuals looking for a way to minimize income taxes. For the average person, it may fulfill their future financial needs.
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Top Investment Idea U/s 80C

Many of us start investment only in February or March, i.e. just before the Financial Year getting over. This could be a big mistake. You may invest your money without proper planning. You may lose interest/appreciation for the whole year. Right time to start planning to invest is start of the financial year. This way you would not only make well informed decisions but also can earn interest for the whole year.

Where_to_InvestHere we will discuss about investment and tax deduction under section 80C of Income Tax Act. Section 80C replaces Section 88. Section 80C has become effective from 1st April 2006. Section 80CCC on Pension Scheme also merged with this section. Section 80C of IT Act allows certain investment and expenditure to be tax exempt. 

The maximum limit of deduction under section 80 is Rs.1.50 lakh from F Y 2014-15 / A Y 2015-16. Before F Y 2014-15 the limit was Rs.1.00 Lakh.

Most of the Income Tax payer try to save tax by saving under section 80C. Must note that under this section you can not only just save tax on investment bust also save tax on certain Expenditure.

Top Investment idea U/s 80C:-

1. Life Insurance Premium: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in this section deduction.

2. Unit Linked Insurance Plan: ULIP covers life insurance with benefits of equity investments. They have attracted the attention of investors and tax-savers not only because it help us to save tax  but also give decent returns in long-term.

3. Provident Fund: PF is deducted from your salary every month and both you and your employer contribute to it. While employer's contribution is exempt from tax, your contribution will come under section 80C. This deduction is compulsory, so this has to be the first and also apart from tax saving, it builds a long term, tax free retirement corpus for you.

4. Public Provident Fund (PPF): Public Provident Fund  is one of the best investment. Interest is compounded yearly and the normal maturity period is 15 years. You can deposit minimum Rs.500.00 and maximum Rs.1.50 Lakh. Remember rate of interest may vary by govt. notification.

5. Equity Linked Saving Scheme (ELSS): This is a mutual fund (MF) specially designed to save tax. The investments that you make in ELSS are eligible for deduction under section 80C.

6. National Savings Certificate (NSC): It is good investment option with a maturity period of Five years and Ten Years. Compounded Interest accrued Half Yearly. Minimum investment in NSC is Rs.100.00 and No Maximum limit. You can withdraw NSC before maturity period in case of certificate holder. Remember Investment in NSC are eligible for deduction but accrue interest income is chargeable to tax in the same year.

7. Pension Fund: In this Section 80CCC investment limit is clubbed with the limit of Section 80C. It means total deduction limit under section 80C and 80CCC is Rs.1.50 Lakh. This means that your investment in Pension Funds upto Rs.1.50 Lakh can be claimed as deduction under section 80C.

8. Five Year Bank Fixed Deposit (FD): Tax Saving fixed deposits with tenure of 5 years are also entitled for section 80C deduction.

9. Five Year Post Office Time Deposit: This is similar to bank's fixed deposit scheme. Interest is compounded quarterly but paid annually. Interest is totally taxable.

10. Home Loan Principal Repayment : The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components- (i) Principal Amount (ii) Interest Amount. The principal component qualifies for deduction under section 80C. And interest component save your tax under section 24 of IT Act. If you have taken home loan this is an automated EMI deduction cum investment. 

11. Sukanya Samriddhi Account: If you have blessed with girl child then it is for you only. You can open account under this scheme from the birth of a girl child till she attains the age of 10 year with minimum deposit of Rs.1000.00 and maximum deposit of Rs.1.50 lakh per year. Accrued interest under this scheme is fully exempt from tax in that year as well as in the year of receipts. For more you can read details in Notification No. G.S.R.863(E) Dated 02.12.2014.

Decide and Analyze which investment idea suite you to save tax and save your money with good return. Decision is yours. Have a happy investment.
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Tax benefit on Payment and Maturity of Life Insurance Premium

Tax_benefit_on_Payment_and_Maturity_of_Life_Insurance_Premium
People are using Life insurance policies as tax planning tool as premium paid on Insurance Policies are eligible for tax benefits under Section 80C of the Income Tax Act 1961 (Act) and Maturity Proceeds are also eligible for exemption under section Section 10(10D)  and  Section 10(10A)(iii)
Life Insurance helps Assessee in saving tax, achieving their long term goals and it also provides Comprehensive financial protection against unforeseen events of their family.
Deduction U/s. 80C in respect of life insurance premium
Maximum Limit – Maximum Deduction allowed under this Section is Rs. 1.50 Lakh and the sum includes payment on other allowable investment option available Under Section 80C of the Income Tax Act,1961. It is to be further noted that combined Maximum limit of deduction under Sec 80C & 80CCC & 80CCD (1) is Rs 1,50,000.
Restriction on Deduction limit: Deduction will be allowed only for premiums upto a maximum of 10% of the sum assured for policy issued on or after April 1, 2012. In case of policy issued before March 31, 2012, deduction will be allowed only for premiums upto a maximum of 20% of the sum assured.
Allowable on Payment- Only life insurance premium paid or deposited during the year are allowable as deduction under Section 80C. 
Disallowance: 
The deductions claimed earlier will be taxable as income if the policy is terminated either by notice or by failure to pay any premium in case of,

Single Premium Policy : within 2 years after the commencement date
Regular Premium Policy : before premiums have been paid for 2 years.
Individual and Hindu undivided family (HUF) can take tax deduction's benefit u/s 80C. It can be paid :-
(i) in the case of an individual (Resident or Non Resident)
- On his own life
- On Wife/Husband (Dependent or Not)
- Child
- Major or Minor (Dependent or Not
- Married or Unmarried Daughter / Son (Dependent or Not)
(ii) in the case of a Hindu undivided family (HUF), any member thereof;
Please note that life insurance premium paid by you for your parents (father / mother / both) Brother, Sisters or your in-laws is not eligible for deduction under section 80C.
If you are paying premium for more than one insurance policy, all the premiums can be included.
It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.
Tax-ability on Maturity
Section 10(10D)
The proceeds under a life insurance policy are exempt under Section 10(10D) of the Act, subject to the provisions of the said section.
Section 10(10A)(iii)
Commuted Pension received from Pension fund (Pension Plans approved by IRDA) would be tax-free.
Goods And Service Tax (Earlier Service Tax) on Life Insurance Premium
All premiums and charges are subject to applicable taxes (i.e. GST) as applicable under the prevailing tax laws.


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Term Insurance Plan - Good or Bad Decision

Term Insurance is a contract between Insurance Company and insured person that primary provides guaranty to pay insurance amount only in case of demise of secondary to their Nominee, If all term & condition full-filed. If demise incident does not happen then company are not liable to pay. So, before taking Term Insurance Plan, person should think and analyze the utility of it. 
Term Insurance takes your risk at very low premium with certain term & condition. Like other insurance and investment alternatives it is also simple and easy. You know the premium amount you have to pay till the policy term and insurance amount your nominee will get if unfortunate demise will happen. 
For taking term insurance to ensure your family's financial future in your absence there are certain things to know before.
First understand the Term Insurance, it is designed for providing a pay-out only in case of demise. It is not an investment option because it would not give you any return. It is not for you, it is for your family member. Only good things about it that it cover high risk amount with very low premium cost
Analyze your requirement, in case you have any loan outstanding (like home loan) and don't want to forward this burden on your family member's in your absence then it is the only best option for you. Certainly you do not want your family to compromise on their lifestyle or find difficulty in sustaining a good life in your absence. It will be big favour by getting yourself a Term Insurance Cover.

Also Read : Term Insurance Plan Pure Life Insurance

First choose the Insurance Amount you think should be enough for your family to get normal life in your absence. Now second option comes that what will be premium/installment amount. There are lot online site who will help you to compare the premium instantly. It can be vary from company to company. The best thing about term insurance  plans is that these plans  are designed to charge the same premium throughout the policy term, even though the risks increases when you grow old. So, it is better to have it in early age and reassess it in every 5 years and if fills & can able to pay premium, you can increase the cover amount you require.
Secondly before selecting any insurance company check their Claim Settlement Ratio at IRDA website. The insurance company could have rejected few claims but you should check the causes behind such decisions. Insurance company will not process a claim which is fraudulent. Choose the best one. Read Term and Conditions & understand the Exclusions carefully. It is important to know before purchase it so that you don't leave your dependents with various issues relating to your term plan in your absence.
Selecting Nominee is very important & crucial job while purchasing insurance plans. It should be a person who shall need your money the most after your passing. It can be your spouse, your parents or your child. It is advisable to keep your beneficiary informed about the key features of the policy and any changes that you decide to make about.
If you consider the above mentioned things when you are getting term insurance plan, you certainly will find the right plan for yourself.

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SAVE TAX SAVE MONEY With Insurance
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