Tax benefits of insurance

An insurance cover not only protects your family but also offers tax-saving benefits.

Your premium payments can be eligible for deduction from your income, reducing your tax liabilities and helping you save more

What are the
Ways to save tax?

  • Invest in life insurance

  • Insure self & loved ones

  • Donate 

Income tax
returns

Register for e-filing to be able to file your income tax returns (ITRs) in a few simple steps.

Benefits

Pocket-friendly

Easy loan application 

Travel overseas stress free

01

Register on the ITR portal 

To register yourself on the ITR portal, you will be asked to provide various details, such as your PAN, full name, and date of birth provide your Permanent Account Number (PAN), name and date of birth details. You will then be asked to set your password. Your PAN will act as your user ID. Please note that your PAN will be used as your user ID on the portal.

02

Select ITR form

There are different ITR forms. Select and download the form that is applicable to you. You may use the following information for your reference:

 

ITR 1 (Sahaj) form is for individuals with a total income of up to ₹50 lakhs per annum. This form may also be used to report salaried income, one house as a property asset, residuary income like interest etc.

 

ITR 2 form is for individuals and Hindu Undivided Families (HUF) with an income of over ₹50 lakh per annum from salary/pension, or more than one house as property but do not participate in any business or profession under a proprietorship. It is also applicable for capital gains and foreign assets or income.

 

ITR 3 form is for individuals and Hindu Undivided Families (HUF) with income sources from businesses or professions under a proprietorship. This is also applicable for individuals that are partners at a firm.

 

ITR 4 form (Sugam) is applicable for Hindu Undivided Families (HUF) with presumptive income from businesses or professions. 

03

Fill the form carefully and correctly

The ITR form can be filled online as well as offline. If you want to fill the form online, you can choose the assessment year (AY2020-21), and download the offline utility software.  To fill the form online, go to the ‘Downloads section ITR Forms AY 2020-21’. Download the income tax return utility. It should automatically start downloading. Once the download finishes, you can open the file on your computer, and fill in the details offline.Open the downloaded file on your system and fill all the details offline. You can then upload the filled documents on the website. 

04

Receive acknowledgement & verification

After uploading your returns on the website, you will receive an acknowledgement as form ITR-V. It is a 1-page verification document you will have to submit to the Income Tax Department on the address mentioned in the document within the next 120 days. This can be done via post. After the Income Tax Department receives this document, your returns will be processed

05

Receive your tax refund 

A tax refund is the refund received on taxes when the tax liability is less than the amount of taxes paid. Taxpayers may be eligible for a tax refund if the tax they need to pay is less than the total amount of withholding taxes and estimated taxes they have already paid. 

Documents to
keep ready

PAN card

Aadhaar card

Bank account
details

Salary slip

Rent receipts
(for HRA claims)

Form 16

Interest certificates

Insurance details 

Home loan details 

Details of investments
to be declared 

Any other proof
of income

Who can buy a life insurance policy?

Any individual who is 18 years old or above at the time of purchasing the insurance policy, and according to the conditions specified under the Indian Contract Act, 1872, can buy an insurance policy Any person who is 18 years of age or above, and as per other conditions specified under the Indian Contract Act, 1872 can purchase a life insurance policy. Alternatively, you may choose to buy a life insurance policy for a nominee, such as your child.

Why should I buy a life insurance policy?

There are several reasons for purchasing a life insurance policy. Choosing a life insurance plan is fundamental to securing your family’s financial future. You can also purchase an insurance policy to save tax, create wealth, plan for your child's education or marriage, or to secure your golden years after you retire.

What is the meaning of insurance premium?

The insurance premium is the payment made by the policyholder to an insurance company for particular coverage. The payment has to be made regularly until the policy’s maturity, or as stated in policy documents, to avail of a specific life insurance cover and other monetary benefits.

Is buying life insurance better than other savings plans?

Traditional savings plans like bank FDs, NSC, and PPFs have short maturity tenures as compared to life insurance policies. Thus, such savings plans do not offer a holistic, and comprehensive financial planning prospects.

 

Life insurance policies, on the other hand, pay the nominees or beneficiaries the sum assured, along with bonuses (with bonus policies), even if the policyholder passes away before the end of the payment term. Thus, a life insurance policy offers greater securityOn the other hand, a life insurance policy pays the sum assured and bonus (with bonus policies) even if the policyholder expires before the end of the payment term. Hence, this provides greater security to the person and their loved ones. As such, insurance policy is superior to other savings plans and offers greater financial security.

 

What is the first premium?

The first premium is the amount paid along with the insurance proposal. This depends on the payment mode chosen; it can be annual, semi-annual, quarterly, or monthly.

Need help with
anything else?


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