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What are Savings Plans? Why Should You Have One?
Additionally, the maturity amount received is tax-exempt under Section 10(10D) , provided certain conditions are met, such as the premium not exceeding 10% of the sum assured for policies issued after April 1, 2012.
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Challenges of Being Self-Employed
Helps you regulate taxes : In essence, savings plans are life insurance plans. Hence, they offer you the same spectrum of tax benefits offered by most life insurance plans out there. More noticeably, as per section 80C of the Income Tax Act, you get the option of availing an exemption amounting up to a sum of ₹1.5 lakhs towards your premium payments. Additionally, death benefits and maturity benefits falling under the ambit of a savings plan are also eligible for tax exemption as per section 10D of the Indian Income Tax Act. All of these factors make savings plans the tax-saving instruments of choice for many.