ITR Filing: These tax benefits are available on life insurance

Tax Return: The deadline to file ITR for the assessment year 2022-23 is near. Interestingly, the government is not planning to extend the deadline for filing ITR from July 31. Therefore, it is important to ensure that you file your ITR on or before the due date to avoid penalties. In order to encourage savings and savings among tax payers, the IT department offers various deductions from the income tax. Taxpayer is required to provide details of income from other sources in ITR. This includes life insurance premiums. That said, if you are filing ITR, be aware of these tax benefits under your insurance.

Section 80C is one of the most popular sections available in income tax. If the policyholder has paid premiums for life insurance to insure his life or the life of any spouse or child of the assessee and in the case of HUF, then the premiums are eligible for benefit under section 80C.

However, it should be noted that these life insurance policies are issued on or before 31 March 2012, and will be eligible for a 20% discount only.

of the actual guaranteed amount or actual payment whichever is less. If, if the insurance is issued on or after the 1st day of April 2012 they will be entitled to a deduction at the rate of 10% of the actual sum assured or the actual sum paid.

If, if the life insurance policy is issued on or after April 1, 2013, on the life of a disabled person as defined in section 80U, or suffering from a disease or illness as defined under section 80DDB – then the amount was paid. they will be eligible for tax exemption up to 15% of the actual amount assured or the actual amount paid whichever is less.

Additionally, income tax exemption is provided on maturity or death of life insurance under Section 10(10D).

According to Clear, the provider of the tax, report, when the amount paid for the policy does not exceed 10% of the guaranteed amount of the policies issued after 1 April 2012 and 20% of the guaranteed amount of the policies issued before 1 April 2012– any amount received on maturity of your life insurance policy or amount received as bonus is exempt from Income Tax under Section 10(10D). Also mentioned here are policies taken after 1 April 2013, on the life of a person with a disability or illness specified under Section 80U and 80DDB respectively, where the amount received on maturity is tax-free provided the amount paid does not exceed 15%. of guaranteed income.

The report also showed that taxes, where premiums are paid, are more than 10% of the sum assured – any money received from life insurance, where the payment is more than 10% or 20% of the sum assured as the case may be. to be, it is fully taxed.

Also, the policy holder can claim their TDS on this life insurance policy by filing ITR. If the policyholder receives more than 1 lakh amount on their insurance and this is not covered under Section 10(10D), then TDS of 1% will be deducted by the insurer before payment to the policyholder. The same discount applies to bonus payments. Also, if the amount received for the insurance is less 1 lakh, then no TDS will be deducted but the amount will be taxable.

Get Business News, Market News, Breaking News and Latest Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Limited Information

Write to Mint Newsletters

* Enter a valid email address

* Thank you for subscribing to our newsletter.