LIC Tax Savings Plan

Tax Savings

LIC Tax saving plans with life insurance and guaranteed returns are considered to be the best of all Investments for salaried people and businessmen. LIC Tax Saving plans can be started with a minimum of Rs. 1,000/- and by investing regularly, and it gives dual tax benefits under Income Tax Act. As LIC of India is fully owned by the Government of India and LIC of India with the highest Claim settlement ratio, makes everyone feel safe and secured.

No Tax up to Rs. 2, 50,000/-

  • From Rs. 2,50,001/- to Rs. 5,00,000/- the tax would be 5%,
  • Rs.5,00,001/- to Rs.10,00,000/- the tax would be 20%
  • Rs 10,00,001/- and above the tax would be 30%

Not having a good Life Insurance policy is a matter of concern. Life Insurance should not be considered only for Tax Savings, but also for insuring life. There are many instruments for Tax Planning like PPF, Mutual Funds, Postal Savings etc., but Life Insurance plays a major role in policyholders- lives as a lifelong companion.

Other investments would be able to fulfil your aim only on reaching the final years, but a Life Insurance policy would help your family members to meet their goals they leave the world also. Life Insurance should be the #1 place in your investment list, it is recommended that at least 30 times of your annual salary should be your life cover.

Benefits of Tax Savings Policy

  • All Premiums paid under LIC Insurance Policies* are eligible for tax exemption under section 80C
  • A person can invest up to Rs.1,50,000/-under section 80 C which includes Life Insurance premium, PF, Tuition fee etc.,
  • Survival Benefit amounts received under MONEY BACK Plans are Tax-free under section 10(10d)
  • Any amount received from LIC like survival benefits, Maturity, and Death claims are 100% Tax-free under Section 10(10d)