Deductions from gross income on Life Insurance premium paid (Traditional & Unit Linked Plans)
Under Sec 80C of Income Tax ActAvailable for Premium paid (max. up to 20% of SA) on Life Insurance policies with a maximum ceiling p.a. Rs. 1,00,000 irrespective of the Gross Total Income.
A maximum of Rs. 1,00,000 p.a. paid as a contribution on a pension plan is fully deductible from the taxable income (within the max. ceiling Rs. 1 lakh )
Under Sec 80D of Income Tax Act
Premium paid for Critical Illness rider is deductible as medical insurance premium from the Gross Total Income chargeable to tax up to a maximum amount of Rs. 15000 & an additional amount of Rs 5000/- (when policy is taken on the health of a senior citizen)
Exemption from the Life Insurance proceedsUnder Sec 10(10D) of IT Act
Maturity benefits are tax-free in the hands of the policyholder if, at any point of time during the policy life, premiums paid within one year do not exceed 20% of the basic Sum Assured.
Death benefits are tax-free.
Please note that tax laws are subject to change and changes in tax laws could be with retrospective effect.
This information should not be construed as tax, legal or investment opinion from SBI Life Insurance Company Limited. SBI Life Insurance Company Limited is not responsible in any manner for decisions made on the basis of the above information.
Please consult your tax advisor in connection with your taxability.