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 adeduction of house rent expenses from your taxable income. The least of the following three will be allowed as adeduction from taxable income:

  • `60,000 per annum(`5000 per month)
  • Rent paid minus 10% of thetotal 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 should not have any other residential property registered in his name

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

Our Tax Saving Insurance Plans With Life Cover

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

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

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Child Plan
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Tax benefits up to `7,8002 U/S 80D with

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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:

ICICI Pru Smart kid under Smart Life UIN: 105L145V06

ICICI Pru Heart/Cancer Protect UIN:

COMP/DOC/Sep/2020/49/4402

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