Tax laws are subject to amendments made to it from time to time. Please consult your tax advisor for details, before taking any decision based on the information below.
In Unit Linked Insurance Plans, the Investment Risk in the Investment Portfolio is Borne by the Policyholder

 

 

There are different ways through which you can save tax. Some of them are:

1. Tax Saving Investment Options under Section 80C:

The premiums paid on life insurance policies are eligible for deduction from taxable income under Section 80C resulting in tax saving. Some of the other tax-savings options which fall under this section are Public Provident Fund (PPF), National Savings Certificates (NSC), Sukanya Samriddhi, National Pension System (NPS) and your child’s tuition fees. However, the maximum amount which can be claimed as deduction from taxable income under this section is `1.5 lakhs.

2. By insuring your and yours loved one’s health:

Under Section 80D, premiums paid in any mode other than cash towards insuring the health of self, spouse, and dependent children are eligible for a deduction for up to `25,000 from your taxable income. Paying the premium on health policies of senior citizen parents makes you eligible for an additional deduction of `30,000 from your taxable income, thereby helping you save more tax. This limit includes the expenses of up to `5000 incurred on preventive health checkups.

3. By submitting rent receipts:

If you are staying in a rented accommodation and receive House Rent Allowance (HRA) from your employer, you can claim deduction under Section 10(13A). The least of the following three will be allowed as exemption from taxable income before calculating the tax on total income :

  • Actual HRA received from the employer
  • The actual rent paid is more than of 10% of salary*
  • 50% of the salary if you stay in a metro city and 40% of the salary if you stay in a non-metro city

* Salary= Basic Salary+ Dearness Allowance as per employment terms

However, under Section 80GG, if you do not receive HRA from your employer or do not own a residential house, you can get a deduction of house rent expenses from your taxable income. The least of the following three will be allowed as a deduction from taxable income:

  • `60,000 per annum(`5000 per month)
  • Rent paid minus 10% of the total income
  • 25% of total income for the year

4. By making a charitable donation:

A donation made towards certain relief funds and charitable organisations is eligible for deductions under Section 80G. However, any donation made in items such as food material, medicines, etc., are not eligible for deduction.

Mode of donations eligible for deductions under Section 80G

You can claim tax* deductions under Section 80G only if you have made a donation through a cheque, demand draft, or cash (No deductions allowed if donations exceeding ₹ 2,000 are made unless by a mode other than cash). Contributions in kind do not qualify for tax* deductions.

Who is eligible to pay?

All taxpayers - individuals, companies, or HUFs, are eligible to make charitable donations and claim tax* deductions under section 80G of the Income Tax Act, 1961

Important documents for claiming tax* deductions

Below are the documents you need to submit to claim tax* deductions under Section 80G:

  • Identity proof of the donor
  • PAN card of the donor
  • Address proof of the donor
  • Proof of the amount of donation

5. By financing higher education:

Under Section 80E, the interest paid on loan taken for higher education qualifies for a deduction from taxable income. The deduction is offered for a maximum of 8 years or till the time the interest is paid, whichever is earlier.

Who can claim this deduction?

Tax* deduction under Section 80E can be claimed by an individual for a higher education loan taken for self, spouse, children, or a student for whom he or she is a legal guardian.

Deduction amount

There is no limit to the maximum amount that can be claimed as tax* deduction under Section 80E. However, the deduction is available for a maximum of eight years or till the interest is paid on the loan, whichever is earlier.

6. By buying a house:

Under Section 24, you can get deduction from taxable house property income, of the interest paid on home loan upto `2 lakhs. Also, first time home buyers can claim an additional deduction from taxable income of 50,000 on home loan interest under Section 80EE, provided the following criteria are met:

  • The housing loan should be sanctioned in the FY 2016-17
  • The loan should not be more than `35 lakhs
  • The residential house value should be less than `50 lakhs
  • The home buyer does not own any other residential property registered in his name on the date of sanction

Life insurance as a tax*- saving tool

Life insurance plans help you save tax*. Depending on the type of life insurance policy you choose, you can claim the following tax* deductions:

  • The premiums paid under the policy are eligible for tax* deductions up to ₹ 1.5 lakh annually under Section 80C of the Income Tax Act, 1961
  • Under Section 10(10D), payouts received under the policy are tax free subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961.
  • The premiums paid towards critical illness benefit are also eligible for tax* exemption under section 80D of the Income Tax Act, 1961

COMP/DOC/Nov/2022/2411/1589

1. What is the maximum amount of tax* I can save in India?

The maximum amount of tax that you can save in India can depend on a variety of factors, such as your taxable income, age, savings, investments, expenses and more.
The various sections under The Income Tax Act, 1961 have tax-saving limits. For instance, you can claim deductions up to a maximum of ₹ 1.5 lakh per annum under Section 80C* On the other hand, Section 80D* offers deductions of up to ₹ 1 lakh. There are several other sections that can offer more income deductions / exemptions.

2. Can I claim deductions for medical expenses on my income tax return?

Yes, you can claim a deduction on medical expenses on your income tax return. Here's how:
You can claim deduction on your health insurance premiums paid under Section 80D* of The Income Tax Act, 1961. You can claim deductions as per below:
  Case I – Self below 60 Years and parents below 60 years Case II – Self below 60 years and parents above 60 years Case III – Self above 60 years
Deduction* for self, spouse and
dependent children
₹ 25,000 ₹ 25,000 ₹ 50,000
Deduction* for parents ₹ 25,000 ₹ 50,000 ₹ 50,000
Maximum deduction ₹ 50,000 ₹ 75,000 ₹ 1,00,000

The maximum permissible amount for deduction* is capped at ₹ 1 lakh.
In addition to this, you can claim a deduction* of up to ₹ 5,000 on medical expenses incurred by you on treatment for yourself or a family member.

3. Can I claim a refund if I have paid excess income tax?

Yes, you can claim an income tax refund when you file your income tax return. If you qualify for a refund, the same will be returned to you.

4. How can I determine my income tax liability?

Below are the steps to calculate your income tax liability:
  • Choose between the old and the new tax regime
  • Add all your incomes, including salary, business or professional income, rental income and capital gains
  • Subtract eligible deductions and exemptions like investments, medical insurance premiums and more
  • Determine the slab applicable to your taxable income and calculate the tax liability accordingly

5. How does income tax work in India?

Income tax in India is governed by The Income Tax Act, 1961. India follows a progressive tax rate system with different slabs based on income levels. The rates may vary for different age groups, like individuals below 60, senior citizens between the ages of 60 and 80 years, super senior citizens above the age of 80 years, and HUFs. However, all qualifying individuals categorised as residents must pay income tax based on their taxable income in a year.

COMP/DOC/Jul/2023/317/3636

Our Tax Saving Insurance Plans With Life Cover

Tax benefits up to `54,6001 U/S 80C & 80D with

Term Plan
ICICI Pru iProtect Smart
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Tax benefits up to `46,8003 U/S 80C with

ULIP
ICICI Pru Signature
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Savings Plan
ICICI Pru Guaranteed Income For Tomorrow
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ICICI Pru Guaranteed Income For Tomorrow (Long-term)
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Single Premium ULIP
ICICI Pru1 Wealth
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Endowment Plan
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Child Plan
SmartKid with ICICI Pru Smart Life
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Tax benefits up to `7,8002 U/S 80D with

Health Plan
ICICI Pru Health/Cancer
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COMP/DOC/Apr/2022/254/0138

 

 

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# Tax benefits under the policy are subject to conditions under the provisions of the Income Tax Act, 1961. Applicable taxes will be charged extra, as per applicable rates. The tax laws are subject to amendments from time to time.

1 Tax benefit of ₹ 54,600 (₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000 and health premium u/s 80D of ₹ 25,000. Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

2 Tax benefit of ₹ 7,800 is calculated at the highest tax slab rate of 31.2% (including Cess excluding surcharge) on health premium u/s 80D of ₹ 25,000. Tax benefits under the policy are subject to conditions under Section 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

3 Tax benefit of ₹ 46,800 is calculated at highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000. Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

Unlike traditional products, Unit Linked insurance products are subject to market risk, which affects the Net Asset Values & the customer shall be responsible for his/her decision. The names of the company, product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.

Please note that the tax write-up above is for general understanding and reference. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. Tax benefits/savings are subject to conditions of Section 80C, 80CCC, 80CCE, 10(10A), 10(10D) and other provisions of the Income Tax Act, 1961. Applicable taxes will be charged extra as per prevailing rates. Tax laws are subject to amendments from time to time. ICICI Prudential Life Insurance Company Limited expressly disclaims any liability to any person, if tax benefits stated above are denied to the customer.

*Tax benefits may be available as per prevailing tax laws. Tax benefits under the policy are subject to conditions under provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for more details.

ICICI Pru iProtect Smart UIN:

ICICI Pru Signature UIN:

ICICI Pru Guaranteed Income For Tomorrow UIN:

ICICI Pru Guaranteed Income For Tomorrow (Long-term) UIN:

ICICI Pru1 Wealth UIN:

ICICI Pru Future Perfect UIN:

SmartKid with ICICI Pru Smart Life UIN:

ICICI Pru Heart/Cancer Protect UIN:

COMP/DOC/Sep/2020/49/4402

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