Tax Benefits can be availed under the Income Tax Act, 1961
Section |
Benefits |
80C |
Premiums paid towards a life insurance policy are eligible for a deduction of up to Rs 1 lakh from the taxable income. |
80D |
Premiums paid towards health insurance are eligible for a tax rebate of a maximum of Rs 15000 (Rs 20,000 for senior citizens) from the taxable income. |
10(10D) |
Any benefits received on your life insurance policy is tax free |
Note- The given limits are as per the guidelines for assessment year 2009-10