However, to claim a deduction under section 80C, the life insurance premium paid should not exceed 10% of the sum assured where the policy has been issued after 1 April 2012. Premium paid towards a life cover taken with any insurer approved by the Insurance Regulatory and Development Authority of India (IRDAI) is eligible for a Section 80C deduction. Many taxpayers doubt whether this deduction is available only in respect of life insurance cover taken with LIC. This deduction is available along with other eligible items like NSC, PPF, fixed deposits, ELSS, tuition fee paid, home loan repayment, provident fund contribution etc. Irrespective of your child being dependent or independent, minor or major, married or unmarried, the deduction under section 80C shall be allowed.Īn individual and a HUF can claim this deduction under Section 80C for life insurance premium paid up to Rs.1.5 lakh every year. If you have paid an insurance premium to insure your own life or the life of your spouse or child, such premium payments are eligible for deduction under section 80C of the Income Tax Act. The tax deductions provided under both the sections for life insurance policy are provided below.
Life insurance policies offer maturity/death benefits and tax deductions under Section 80C and Section 10(10D) of the Income Tax Act, of 1961. Income received from insurance policies issued on or after 1 April 2023 (other than unit-linked policies), having a premium or aggregate of premium exceeding Rs 5 lakh in a year, will be taxable (except in the case of the death of the insured).
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