Sentences with phrase «tax under this single policy»

Not exact matches

Policy Exclusions: The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 90 % of the single premium paid excluding taxes and any extra premiumPolicy Exclusions: The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 90 % of the single premium paid excluding taxes and any extra premiumpolicy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 90 % of the single premium paid excluding taxes and any extra premiumpolicy except to the extent of 90 % of the single premium paid excluding taxes and any extra premium paid.

Endowment plans such as LIC single premium policy allow an insured to avail tax benefits under section 80C of the Income Tax Act and even section 10 (10D), subject to certain stipulatitax benefits under section 80C of the Income Tax Act and even section 10 (10D), subject to certain stipulatiTax Act and even section 10 (10D), subject to certain stipulations

In addition, the low life insurance cover relative to your premium offered by single premium policies greatly reduces the tax benefits given to insurance under Sections 80C and 10 (10)(D).

You are entitled for a tax free maturity / death benefit under Section 10 (10D) only if the minimum sum assured throughout the policy term remains 10 times the single premium paid.

So in a nutshell, it is important to make sure that you buy the right amount of sum assured or life cover under a life insurance policy with a single premium to take tax benefits.

So one needs to be careful about certain conditions under which the Single Pay Premium Policies can avail the tax benefits.

Let us have a look at certain conditions which will qualify Single Premium Life Insurance Policies to be qualified for Tax Benefits under Section 80 C and Section10 (10D):.

If the single pay life insurance policy is surrendered within two years since inception, the tax deduction allowed in the past under Section 80C will be considered as income of the policyholder in the year of surrender and applicable tax will be levied.

Bottom Line: Ensure that the sum assured is at least 10 times the premium amount under a single premium life insurance policy to get the tax free maturity proceeds.