Income Tax

Income tax benefits

Income tax benefits for Life Insurance Plans

Important Income tax benefits available under various plans of life insurance:
1) Deduction allowable from income for payment of Life Insurance Premium (Sec. 80C).
(a) Life Insurance premium paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof, deduction allowed upto 20% of capital sum assured during any financial year.
(b) Contribution to deferred annuity Plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for education.
(c) Contribution to Pension/Annuity Plans – New Jeevan Dhara-I & Jeevan Akshaya – VI

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Income tax benefits

Income tax rates for the assessment year 2011-2012 (The financial year 2010-2011)

Income tax rates for assessment year 2011-2012 (Financial year 2010-2011)

Education Cess: An additional surcharge called “Education cess” at the rate of 2% on the amount of income tax and surcharge (if any) in all cases shall be levied.

Secondary and higher: An additional surcharge, called the “Secondary and Higher education cess on income tax at the rate of 1% of income tax and surcharge ( Not including the education cess on income tax) in all cases shall be levied. Read more about Income tax rates