What do you know about Section 80C and Section 10(10D)?

Question

Accepted Answer

Section 80C and 10(10D) are provisions in the Indian Income Tax Act that offer tax benefits on certain investments and insurance policies.

Section 80C allows individuals to claim deductions on investments in specified financial instruments such as life insurance premiums, employee provident fund, public provident fund, and tax-saving fixed deposits.
The maximum deduction allowed under section 80C is Rs. 1.5 lakh per financial year.
Section 10(10D) deals with the tax treatment of proceeds from life insurance policies.
Under section 10(10D), any amount received from a life insurance policy, including maturity proceeds, surrender value, or death benefit, is exempt from tax.
However, if the premium paid exceeds 10% of the sum assured in any year, the exemption under section 10(10D) may not apply.
For example, if a policyholder pays a premium of Rs. 30,000 for a sum assured of Rs. 2 lakh, the exemption under section 10(10D) may not be available.
Both section 80C and 10(10D) provide individuals with opportunities to save on taxes and encourage investments in insurance and other specified financial instruments.

Accepted Answer

Under Section 80 C, premium amount of Life Insurance is considered for Tax Saving. Under Section 10(10)d, premium amount of General/Health insurance is considered for Tax Saving.

Asked in Future Generali India Life Insurance

What do you know about Section 80C and Section 10(10D)?

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