Call Us

FOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Call us:

1 860 266 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

Dedicated NRI Helpdesk:

+91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

FOR NEW POLICY

Want to buy a new policy online?

Call us:

+91 22 6984 9300

Give missed call for a call back:

+91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST


Exclusively for NRIs:

Call us:

+91 11 4473 0240

Monday – Sunday | 9 am – 9 pm IST

Give missed call for a call back:

+91 11 4473 0242

Monday – Sunday | 9 am – 9 pm IST

Language

Back Arrow Icon
Close Button

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.


How to Secure Income Tax Under Section 80C with Tata AIA Life Insurance Plans?

Section 80C - Tax Benefits

Life insurance plans have become a basic need to secure your family in case of your unexpected demise. The Government of India also considers the importance of such financial products and encourages people to invest in them by providing tax benefits under the Income Tax* Act, 1961. And Section 80C is one of the most and best-used tax provisions that help policyholders secure their family's financial future while saving on tax*. So, let us get started and understand how you can benefit from purchasing Tata AIA term insurance plan and save on tax under Section 80C.

Before we understand how to save on tax, let us glance through the benefits of Income Tax* 80C of the Income Tax Act.

What is Section 80C of the Income Tax Act, 1961?

Section 80C of the Income Tax Act, 1961 provides a tax* deduction on your total gross income up to ₹ 1,50,000 to reduce your net taxable income for investments made on various financial products.

It includes financial expenditure incurred and investments made in

  1. Fixed Income Products such as Provident Fund, Public Provident Fund, National Savings Certificate, Tax Saving Fixed Deposits, etc.,

  2. Variable Return Products such as Life Insurance Premium, Equity Linked Savings Certificate, Pension Plans from life insurance companies, Unit Linked Insurance Plans(ULIP), etc.,

  3. Other expenses such as amount spent on home loan principal repayment, tuition fees for children, etc.

How to Secure Tax Benefits Under Section 80C with Tata AIA Term Plans?

Tata AIA term plan provides a range of benefits while saving on tax. The premium amount you pay towards purchasing Tata AIA term plans will qualify for tax benefits under Section 80C of the Income Tax Act, 1961.

  1. If the term policy is surrendered or terminated within two years from the beginning of the policy term, you will not be able to claim the deductions under Section 80C.

It is important to note that, under these conditions, the death benefit from the term plan also qualifies for tax exemption under Section 10(10D) of the Income Tax Act.

The tax deduction is applicable on the premium paid when you buy the term plan for self, spouse or children. The children can be minor or major for consideration. Also, this tax deduction under 80C applies to individuals and HUF.

Example

Let us consider an example to understand the tax benefits on term plans. Suppose Ms Kamala invests in Sampoorna Raksha Supreme term plan and pays a yearly premium of ₹30,000 for a sum assured of ₹28,00,000 and policy term 10 years. Her yearly premium does not exceed 10% of the sum assured. Therefore, the premium qualifies for tax deduction under Section 80C.

Here is the income tax calculation for Ms Kamala, considering her salary structure and investments in Life Insurance Term Plan and National Pension Scheme.

 

Particulars

Amount(₹)

Basic Salary(₹30,000*12)

360000

Dearness Allowance (20%)

72000

Total

432000

HRA

1000

Contribution by the employer to NPS

50000

Contribution by employee to NPS

50000

Gross Total Income

533000

 

 

Less Standard Deduction

50000

Gross Taxable Income

483000

 

 

Deduction under Section 80C

 

Contribution of Employer to NPS

43200

Contribution of Employee to NPS

43200

Premium paid for Sampoorna Raksha Supreme

30000

Total

116400

 

 

Net Taxable Income

366600

 

Tax Slab

Rate(%)

Tax(₹)

Upto 250000

Nil

Nil

250000 - 500000

5%

5830

Total

 

5830

Cess

4%

233

Total Income Tax Liability

 

6063


We can see a considerable decrease in the net taxable income and further the tax liability due to her investments. Therefore, it is important to make a financial plan with sufficient investments to secure life and tax savings. Here is a brief of term plans.

Tata AIA Term Life Insurance Plans

Tata AIA offers different term life insurance plans to provide customised financial solutions to policy seekers.

  1. Tata AIA Life Insurance Saral Jeevan Beema (UIN: 110N157V01)is the simplest and affordable pure protection plan. There is flexibility to choose the premium payment mode and frequency. You can also enhance the benefit by opting for additional riders# such as the critical illness rider#, terminal illness rider#, etc.

  2. Tata AIA Life Insurance Sampoorna Raksha Supreme (UIN: 110N160V02) provides death benefits with regular income, options to top up at different milestones in your life, optional comprehensive protection and health riders# etc.

  3. Tata AIA Life Insurance InstaProtect Solution combines the benefit of life coverage with accidental death, total and permanent disability, critical illness, hospitalisation expenses etc. You can also choose to receive the return of the premium amount paid if you survive the policy term by paying an additional premium but saving more on tax simultaneously.

Conclusion

While investing with Tata AIA term plans, you can choose from a range of the most affordable and comprehensive solutions while saving on tax*. Therefore, the premium amount you spend on purchasing the term plan will qualify for a tax* deduction based on the discussed terms and conditions. Moreover, you can customise the products based on your steady flow income and family commitments to maximise protection for your family in case of your unexpected demise. So start investing early, stay invested in the long term, and save more on tax!

 

L&C/Advt/2022/Apr/0859

 

Looking for a financial solution to save tax? Speak to our expert

+91 dropdown arrow
  • +93 Afghanistan

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

Looking to buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

People Like You Also Read

What is Tax Planning?
Read More
How to Apply for PAN Card Online and Offline in India?
Read More
Aadhaar Card for Non Resident Indians (NRIs)
Read More
Income Tax Rebate
Read More
Know Everything about Minimum Alternate Tax (MAT): Meaning, Rates and Calculation
Read More
5 Tax Saving Tata AIA Life Insurance Plans for Young Parents | Tata AIA Blog
Read More
5 Tax Saving Tips for Newly Married Couples
Read More
EPF Form 31 – What It Is, Eligibility, Filing Procedure, and Instructions
Read More
Child Education Allowance
Read More
EPF Form 11
Read More

People Like You Also Read

What is Tax Planning?
Read More
How to Apply for PAN Card Online and Offline in India?
Read More
Aadhaar Card for Non Resident Indians (NRIs)
Read More
Income Tax Rebate
Read More
Know Everything about Minimum Alternate Tax (MAT): Meaning, Rates and Calculation
Read More
5 Tax Saving Tata AIA Life Insurance Plans for Young Parents | Tata AIA Blog
Read More
5 Tax Saving Tips for Newly Married Couples
Read More
EPF Form 31 – What It Is, Eligibility, Filing Procedure, and Instructions
Read More
Child Education Allowance
Read More
EPF Form 11
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance