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is paid, the income tax shall be reduced by 12000 and balance tax if any, shall be

payable.

3) Premium under pension plans like Jeevan Suraksha policy of LIC has a special

privilege under Income Tax Act. Under sec. 80CCC. actual premium paid upto Rs.

10,000/- per annum is deductible from income for arriving at taxable income.

4) Similarly under sec. 80(D) premium paid by an assesse under Mediclaim Policy (

on the life of self, spouse, children, dependant parents) upto an amount of Rs

10000/- is deductible from income for tax purpose.

5) Under Sec, 80(DD), premium paid under Jeevan Adhar policy of LIC or similar

policy of UTI along with the medical expenses incurred for the treatment of

handicapped dependents is tax deductible upto Rs. 40,000/-.

6) Annuity received is subject to Income Tax while the premium paid for purchase of

an annuity is allowed a tax rebate.

The tax exemption are available for all the insurance companies operating in the

Indian Market.

Section D

Life Cycle needs

Human needs have evolved over time. As a cave man, his need was limited to

satisfy his hunger and thirst. He was also worried about his safety from other

animals and ferocity of nature. He found gradually that he alone would not be equal

to the task of providing for himself. He sought a wife who gave him confidence, love

and affection, begetted children, who were his extended self. They received all the

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