Page 54 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE
P. 54

Service tax is leviable on life insurance service to the extent of


                         risk cover.





               Extra Reources


               Saving on Tax with Life Insurance:




               Deductions:



               Section 80C:



               There are many investments that can help you save on tax under


               Section 80C, the most popular and beneficial of which is investing in a

               good life insurance policy.




                 This deduction is available for individuals and Hindu Undivided

                   Families (HUF).


                 The maximum amount that can be exempted from taxation under

                   Section 80C, 80CC and 80CCE is Rs.1,50,000.


                 Deductions are only allowed for Premiums up to 20% of the Sum

                   Assured, if the amount of Premium paid in a particular financial year


                   for a policy is in excess of 20% of the actual Sum Assured. This is

                   relevant only to policies that were issued before 31 March 2012.
   49   50   51   52   53   54   55   56   57   58   59