RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Income Tax Benefits of paying Insurance Premium

down-arrow
Income Tax Benefits of paying Insurance Premium
November 13, 2018
Bulk of the Indian taxpayers look towards tax-savings and tax -benefits as a core source of fuelling monetary savings and building the potential for investments. Therefore, understanding the mechanism of how and where do tax benefits pitch in is very essential. Insurance, is the guaranteed way of ensuring capital safety, financial freedom and returns on investment, besides ensuring that the core funds/monetary strength do not get depleted in times of contingency.

Broadly speaking, insurance plans (both general and non-general) are formulated taking into consideration the various tax-planning frame works. After all, insurance does act a tool for your tax planning as well. Consider these points for further understanding:

  1. The amount paid as premium towards a life insurance policy is allowed as a deduction under section 80C (for the financial year in which it is paid). This goes both for an individual or HUFs (Hindu Undivided Families).
  2. Under the same section 80C, the Service Tax levied (on the amount paid as premium towards life insurance) is also allowed as deduction.
  3. Under the Income Tax Act, the amount that is meant to be a receivable upon the policy/plan maturity is also allowed as deduction (Section 10D).
  4. Apart from life insurance, the general forms of insurance i.e. health insurance, car insurance, travel insurance etc. have respective tax beneficial terms and conditions. For instance, under section 80D, income tax deduction for payment of premium towards health insurance plan is allowed as deduction (Rs. 30,000 for senior citizens and Rs. 25,000 for Non-senior citizens). This too is meant for both - the individual as well as for HUFs. Moreover, this covers the individual who pays the premium towards the rest of the family (e.g. for spouse or children).
  5. Section 80D allows tax deduction from the total taxable income for the payment of premiums towards medical insurance premium.

This deduction that is admissible under Section 80D is a sum of the payment of medical insurance premium by a person towards herself/himself, the spouse and the dependent children (Rs.25000) and if the person is a senior citizen, the deduction allowed is Rs.30000.

In case of premium payment for the sake of parents (dependent or not), the deduction allowed is Rs.25000. From 2018-19 onwards, the deduction allowed is Rs. 50000.

Additionally, there is income tax slab rates benefit on insurance premium for super-senior citizens as well. Super senior citizens are the citizens who are above the age of 80 years. Under the amendment in section 80D in Finance Act 2015, deduction under section 80D for all the medical expenses was allowed. Under the said amendment, the total deduction allowed for super senior citizens for payment of medical insurance premium and medical expenses was Rs. 30000 (which was increased to Rs. 50000 from the financial year 2018-19).

HDFC Life offers comprehensive benefits of insurance plans that are aimed at securing your financial independence at all times. For more details, kindly check the mentioned link:

Related Articles

Calculate Income Tax

Show Full Article
Hide Full Article

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Income Tax Saving Tips for Young Earners

Income Tax Saving Tips for Young Earners

Many young earners are unaware of the whole tax system & its working. Here is a list of income tax saving tips for young earners to help them save more!

What is Tax Declaration Form? - Process to File Income Tax Declaration

Tax Savings Strategies for Salary above Rs 30 lakh in India

Best Investment Options for Senior Citizens in India

Find the best Investment Options For Senior Citizens in India with HDFC Life. Uncover senior citizen investment options tailored for stability and growth.

Best Investment Options for Senior Citizens in India
No Tax on Ancestral Jewellery - Purchase From Disclosed Income Previous
Tax exemption limits for allowances, reimbursements paid to employees Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches