Tax Saving Life Insurance Plans
How to save income tax with Life Insurance Plans?
Under the Income Tax Act, 1961 you can save tax on your hard-earned money by using our Life Insurance Products and solutions. You can get tax advantages at different stages of the policy.
Stage 1: Entry Advantage– You receive tax benefits on your premium payments under Section 80C (life insurance), Section 80CCC (pension) and Section 80D (health).
Stage 2: Earnings Advantage– Your investment with us gets the potential to grow and is not currently taxable~.
Stage 3: Exclusive Switching Advantage– You can switch between equity, debt and balanced funds anytime and these switches are not taxable~.
Stage 4: Exit Advantage– The proceeds you receive on maturity under the policy are exempt subject to conditions under Section 10(10D) of the Income Tax Act, 1961
Tax benefits^ offered under the Income Tax Act, 1961:
Section 80C:You can claim a deduction from your taxable income on account of the premium paid towards life insurance for self, spouse or children. You will be allowed a maximum deduction of up to `1.5 lakh.
Section 10(10D):The proceeds received under the policy are exempt subject to conditions under Section 10(10D) of the Income Tax Act, 1961.
Details of plans eligible for tax benefits under Sections 80C and 10(10D):
|Sections 80C, 80D||ICICI Pru iProtect Smart||105N151V06||Term Plan||Yes - Check Premium|
|Sections 80C &
|ICICI Pru Signature||105L177V02||ULIP Plan||Yes - Check Premium|
|ICICI Pru1 Wealth||105L175V02||ULIP Plan||Yes - Check Returns|
|ICICI Pru LifeTime Classic||105L155V05||ULIP Plan||Yes - Check Returns|
|ICICI Pru SmartLife||105L145V05||ULIP Plan||Yes - Check Returns|
|ICICI Pru Cash Advantage||105N132V02||Money Back Plan||Yes - Check Returns|
|ICICI Pru Savings Suraksha||105N135V02||Endowment Plan||Yes - Check Returns|
|ICICI Pru Future Perfect||105N153V02||Endowment Plan||Yes - Check Returns|
|ICICI Pru Assured Savings Insurance Plan||105N144V08||Endowment Plan||Yes - Check Returns|
|ICICI Pru Sarv Jana Suraksha||105N081V04||Rural Plan||No - Explore|
Section 80CCC:You can get tax benefits on premiums paid up to 1,50,000/- towards pension/retirement policies. However, if you surrender the plan, the pension/annuity received will be taxed as per the existing tax laws.
Section 10(10A)*:1/3rd of the payment that you receive under the plan at the time of retirement is exempt where you are entitled to receive gratuity and 1/2 in other cases.
Please refer to the table below to view the details of plans eligible under Sections 80CCC and 10(10A)
|Section 80CCC & Section 10(10A)||ICICI Pru Easy Retirement||105L133V02||Retirement Plan||Yes - Buy Now|
|Section 80CCC & Section 10(10A)||ICICI Pru Immediate Annuity||105N009V14||Retirement Plan||Yes - Buy Now|
Section 80D:You can get tax benefits on premiums paid in any mode, other than cash towards health insurance policies taken for yourself, your spouse, your dependent children and your parents. The maximum tax benefits under Section 80D are as follows:
- You can get deduction up to ₹ 25000 under Section 80D for yourself and your family (₹ 50000 if age of insured is 60 years or above) and up to ₹ 25000 (₹ 50000 if age of insured is 60 years or above) for your parents.
*Insured is the person on whose health the insurance is taken.
Please refer to the table below to view the details of plans eligible under Section 80D
|Section 80D||ICICI Pru iProtect Smart||105N151V06||Term Plan with Health option||Yes - Check Premium|
|Section 80D||ICICI Pru Heart/Cancer Protect||105N154V03||Health Insurance Plan||Yes - Check Premium|
Section 80CCE:Under this section, the overall limit of deduction from taxable income to get tax benefits under Sections 80C, 80CCC and 80CCD(1) is 1,50,000/-.
Tax* benefits for single premium insurance policies
1. Where can I invest to save tax?
2. How much should I invest to save tax?
3. Is ULIP a good tax-saving investment?
4. How to plan your tax* saving investments for the year?
5. How to choose the right tax* saving investment plan?
6. How many tax* free instruments can one have?
7. How can I reduce my taxes* legally?
8. How to see how effective your tax* free instruments are?
* Tax benefits are subject to conditions prescribed under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses 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.
^^Tax benefits of ₹ 46,800/- under Section 80C is calculated at the highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium under Section 80C of ₹ 1,50,000/- . Tax benefits are subject to conditions under Sections 80C, 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 to it from time to time. Please consult your tax advisor for details.
^ Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 80CCC, 80CCE, 10(10D), 10(10A) 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.
~Please note: The tax write-up above is for general understanding and reference. You will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting based on the above information. Tax laws are subject to amendments from time to time. ICICI Prudential Life Insurance Company Limited expressly disclaims any liability to any person, if the tax benefits stated above are denied to the customer.
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.