LIC Tax Benefit Calculator
Evaluate premium eligibility under Section 80C and audit Section 10(10D) tax-exempt ratios for policy payouts.
₹6,240
Net effective premium cost: ₹23,760.
• Deductions under Section 80C are capped at ₹1,50,000 for the Old tax regime.
• The New tax regime offers lower tax slabs but eliminates 80C deductions for insurance premium payments.
Section 80C Deductions
Premiums contributed toward life insurance policies qualify for income deductions up to a total of ₹1,50,000 per financial year under Section 80C of the Income Tax Act.
Section 10(10D) Exemption
Maturity proceeds and death benefits are fully exempt from income tax if the basic Sum Assured is at least 10 times the annual premium paid. The calculator performs this ratio audit dynamically.
Frequently Asked Questions (FAQ)
What happens if my Sum Assured is less than 10 times the annual premium?
If the ratio is below 10x, maturity proceeds lose Section 10(10D) protection, and gains are taxed as income at your slab rate. TDS may also apply.
Are health insurance premiums covered under Section 80C?
No. Health insurance premiums qualify for separate deductions under Section 80D up to ₹25,000 (₹50,000 for senior citizens).
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