Executives and business owners may have the ability to invest through company sponsored 401 (k) plans, which reduce the amount of income subject to income tax by making payroll deductions. (marketwired.com)
Another benefit to a deduction is that it reduces income subject to the highest tax brackets first. (turbotax.intuit.com)
Any payment made towards such a policy is allowed as a deduction from the total taxable income subject to a maximum of Rs. 1.5 lakh. (securenow.in)