Archive | Insurance

No TDS on insurance commission if total income is not taxable

Budget 2017 came as a great relief for Insurance Agents, in case their taxable income is less than Rs2.5 Lakhs. This is because now TDS will not be deducted from their insurance commission income. This amendment will be effective from 1st June, 2017. To avail this benefit, Agent is required to furnish Form 15G and […]

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Paying life insurance premium? Don’t forget to claim tax benefits

Payment towards Life Insurance premium not only protects one’s family but is also a great tool for tax planning & savings. Life Insurance premium is money an individual pays for purchasing an insurance policy. In exchange for premium paid, the life insurance company provides a lump-sum payment. This lump-sum payment is the ‘sum assured’ of […]

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Importance of life insurance for financial well-being

What are the various tax benefits associated with life insurance products? Life insurance products come with tax-saving deductions as under: Life insurance premium payments made up to Rs 1.5 lakh under Section 80C in the name of the taxpayer, taxpayer’s spouse or children ULIP investments up to Rs 1.5 lakh under Section 80C. ULIPs are […]

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Term life insurance – The first step towards financial security

A common sentiment among youngsters these days is that life insurance is a waste of money. Ask them why and they’ll say–because it doesn’t give any returns. On probing further, one gets to peep into how the young human mind functions. We are programmed by society to seek monetary gains from everything that we do. […]

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Are single premium insurance policy receipts taxable?

Taxpayers are sometimes unsure about how they should treat payouts received from a single premium insurance policy. Someone wrote to us and asked – Question: I had taken a Policy from Bajaj Allianz Life Insurance co.Ltd. and paid single premium on 25/3/2010 and surrendered 1/12/15. I have received Rs.193102/- after deducting Rs.3941/- towards 2% TDS on the total amount. […]

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