Hi all,
I have invested in the LIC Market Plus 1 scheme this year. What tax benefits will I be eligible for? Some say either 10% or 20% etc. is deductible under Section 80C, while others say the full amount is deductible.
From India, Maisuru
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I have invested in the LIC Market Plus 1 scheme this year. What tax benefits will I be eligible for? Some say either 10% or 20% etc. is deductible under Section 80C, while others say the full amount is deductible.
From India, Maisuru
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Hey Balaji,
The tax benefit rate depends on the tax bracket you fall into. The entire amount of premium paid to LIC under Market Plus is deductible under section 80C up to a maximum limit of Rs. 100,000, provided that the amount of risk cover taken is more than 5 times the premium if you have a single premium plan.
For example:
Premium Paid: Rs. 50,000 (single)
Risk Cover: Rs. 250,000
Gross Income: Rs. 500,000
Tax liability calculation:
Gross Income: Rs. 500,000
Minus Premium: Rs. 50,000
Net Income: Rs. 450,000
You have to pay tax on Rs. 450,000.
Akhilesh
From India, Mumbai
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The tax benefit rate depends on the tax bracket you fall into. The entire amount of premium paid to LIC under Market Plus is deductible under section 80C up to a maximum limit of Rs. 100,000, provided that the amount of risk cover taken is more than 5 times the premium if you have a single premium plan.
For example:
Premium Paid: Rs. 50,000 (single)
Risk Cover: Rs. 250,000
Gross Income: Rs. 500,000
Tax liability calculation:
Gross Income: Rs. 500,000
Minus Premium: Rs. 50,000
Net Income: Rs. 450,000
You have to pay tax on Rs. 450,000.
Akhilesh
From India, Mumbai
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