sir, I have a policy of one lakh per year premium.In which there is sum assured of five lakh & i am taking tax benefit of one lakh per year by this policy itself.Now after 1st apr 2012 on ward i will be getting tax benefit on this policy`s premium or not, because 1.sum assured is not twenty times or/& 2.tax exemption will not be more than fifty thousand for any type of insurance policy in DTC.Please eleborate,Thanks. k.c. mehrotra
1 Answers
After 1st April, 2012, when Direct tax code will be applicable, income tax deduction will be available for only those premium paid towards insurance policies where sum assured is at-least 20 times the annual premium paid.
The policy taken by you which has premium of 1 lakh and assured sum of 5 lakhs won't be beneficial for tax saving purposes.
Tax exemption will be there for insurance policies upto max Rs 50,000 (this has been added just for pure insurances)
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