Sir, you mean to say that one lakh of present tax relief will remain & an extra fifty thousand tax relief will be allowed for insurance policies only and that too,total relief of Rs.150000 could be claimed through insurance premium alone?Please clearify giving section nos.of DTC.tHANKS.
1 Answers
Sorry for the wrong interpretation earlier.
Under Direct Tax code, You can only claim maximum 50,000 for insurance policies.
The one lakh investment can now only be done in provident fund, superannuation fund, gratuity fund and new pension fund. Rs 1 lakh is now only available as a deduction towards investments only in retiral accounts such as PPF, EPF, NPS, and in savings schemes as notified by the Government.
Another 50,000 has been added just for pure life insurance (Sum insured is atleast 20 times the premium paid), health insurance, mediclaims policies and tuition fees of children.
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