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rajkotupdates.news : tax saving pf fd and insurance tax relief

Introduction

rajkotupdates.news : tax saving pf fd and insurance tax relief

Dear Readers & Viewers, As we all know that Income Tax Dept. of Govt of India has given a clear notification that taxpayers can get the deduction upto Rs. 1,50,000/- U/s 80C by investing in LIC Insurance Policy and Public Provident Fund (PPF). Besides this deduction Upto Rs. 50000/- is allowed on the investment made in New Pension Scheme. But there is confusion among the people about the deduction U/s 80C for investing in mutual funds, tax saving FD and other financial instruments . So now let me explain what is the exact position of law as per my understanding? As per my understanding we can get deduction upto Rs. 1,50,000/- U/s 80C by investing in LIC & PPF etc but not on mutual funds and tax saving FD etc . Because each section has got different provisions and eligibility criteria for tax deductions or tax benefits .

Dear Readers & Viewers,

rajkotupdates.news : tax saving pf fd and insurance tax relief

Dear Readers & Viewers,

This article is about tax saving pf fd and insurance tax relief. It will be helpful for you to know about these two tax saving schemes.

Tax Saving Pensions for FDs & Insurance Companies:

A Tax Saving Pension can be an effective way to save money in your retirement years by allowing you to withdraw funds from your pension plan before retirement age. This can help with buying property, paying off debts or even starting a business on the side!

As we all know that Income Tax Dept. of Govt of India has given a clear notification that taxpayers can get the deduction upto Rs. 1,50,000/- U/s 80C by investing in LIC Insurance Policy and Public Provident Fund (PPF). Besides this deduction Upto Rs. 50000/- is allowed on the investment made in New Pension Scheme.

rajkotupdates.news : tax saving pf fd and insurance tax relief

  • The amount which can be claimed as deduction under Section 80C is Rs. 1,50,000/-.
  • Income derived by way of salary and wages in case of an employee and income derived by way of interest on provident fund contribution made to the EPF account in case of an employer are not eligible for this benefit.*
  • It has been mentioned that if you have invested your money in any insurance policy or public provident fund (PPF) then it will be considered as investment made in New Pension Scheme.

* You can invest upto Rs. 1 lakh in NPS during a financial year. If you wish to invest more than Rs. 1 lakh, then you will have to make separate investments in two different financial years.

But there is confusion among the people about the deduction U/s 80C for investing in mutual funds, tax saving FD and other financial instruments. So now let me explain what is the exact position of law as per my understanding?

rajkotupdates.news : tax saving pf fd and insurance tax relief

But there is confusion among the people about the deduction U/s 80C for investing in mutual funds, tax saving FD and other financial instruments. So now let me explain what is the exact position of law as per my understanding?

The deduction under section 80C can be claimed only on investments made under Section 80C(1)(a). The provision allows you to claim deduction of basic expenses on these types of funds up to Rs 1 lakh per year. The benefit has been extended to all age groups except those who are below 18 years old or above 60 years old (if single) or above 65 years old (if married with/without children).

It should also be noted that this benefit cannot be availed by any resident individual who holds a PAN card issued by any state government; however, it will continue even if he or she migrates out from Rajkot state into another one within India

As per my understanding we can get deduction upto Rs. 1,50,000/- U/s 80C by investing in LIC & PPF etc but not on mutual funds and tax saving FD etc. Because each section has got different provisions and eligibility criteria for tax deductions or tax benefits.

rajkotupdates.news : tax saving pf fd and insurance tax relief

As per my understanding we can get deduction upto Rs. 1,50,000/- U/s 80C by investing in LIC & PPF etc but not on mutual funds and tax saving FD etc. Because each section has got different provisions and eligibility criteria for tax deductions or tax benefits.

For example:

  • Sec 10(10D) of I-T Act 1961 provides that income received by way of premium on non-life insurance policies is exempt from tax as long as it is paid to an authorised bank account designated by the assessee himself in his nomination form filed with Revenue Commissioner’s office within 30 days from the date when such income is credited into his account (as per rule 51C). The income shall be deemed to have been received at the time it was credited into such specified bank accounts (as per Sec 52A).

The amount received from LIC claim and amount received from policy maturity are tax free because these incomes are provided by sec 10 (10D) of I.T Act 1961

rajkotupdates.news : tax saving pf fd and insurance tax relief

The amount received from LIC claim and the amount received from policy maturity are tax free because these incomes are provided by sec 10 (10D) of I.T Act 1961.

However, if you receive any interest from LIC policy before maturity, then the same is taxable as per your tax slab rate.

However, if you have received the maturity benefits of your LIC policy in lump sum or in instalments, then you need to pay tax on this income. The amount received from LIC claim and the amount received from policy maturity are tax free because these incomes are provided by sec 10 (10D) of I.T Act 1961

. However, if you receive any interest from LIC policy before maturity, then the same is taxable as per your tax slab rate.

Conclusion

If you are a resident of Rajkot, then we have good news for you. We will be sharing our latest take on tax saving pf fd and insurance tax relief that would help you save money on your taxes and make the most out of it.

rajkotupdates.news : tax saving pf fd and insurance tax relief

Title of content: How Much Will I Save if I Invest in Bonds? Label for this section: Conclusion

How to write this section: Make sure to include a conclusion as well!

Section heading 1: Explain what’s going on here, why should readers care about these numbers? (TL;DR followed by bullet points) (4 points)

rajkotupdates.news : tax saving pf fd and insurance tax relief

Section heading 2: Summarize the main idea or takeaway from this section in one short sentence (3 points)

Section heading 3: What does “price” mean in this context? Is that important? Why or why not? Is there any other way to interpret it besides just being related to value/cost/(or lack thereof)?

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