| · Is there any Tax Benefit on the premium I pay for my life insurance policy? |
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| Rebate is available under Section 80C of Income Tax Act, 1961. For the financial year 2008-09, the basic income tax exemption limit has been raised from Rs. 1,10,000 to Rs. 1,50,000. The exemption for women asseesees has been raised from Rs. 1,45,000 to Rs. 1,80,000, and for senior citizens it's raised from Rs. 1,95,000 to Rs. 2,25,000.
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| · What are the Tax Benefits in case I opt for a Pension Plan? |
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| Under Section 80CCC, where you have paid premiums for any pension plan, you will receive pension from a fund referred to in Section 10(23AAB). You will be able to avail a deduction of upto Rs. 10,000 from the total income.
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| · After the maturity of my policies, will the maturity proceeds be taxable? |
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| Please note that the maturity proceeds of life insurance policies are not taxable. Under pension plans, you can even withdraw up to one-third of the total maturity amount in cash and the same would be tax-free.
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| · If I pay the premium on policy for my wife/husband, can I claim Tax benefits? |
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| Life insurance premium paid by you for your wife/husband's policy qualifies for a deduction under Section 80C of the Income Tax Act, 1961. For financial year 2008-09, all classes of assesses are entitled to additional relief under Section 80D. If the medical insurance premiums are incurred for the benefit of the taxpayer's parents, the maximum exemption under section 80D will be Rs. 50,000 instead of the earlier Rs. 15,000.
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| · If I purchase a Unit Linked Insurance Plan (ULIP) and I choose to discontinue my policy, can I claim any tax benefits? |
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| If you chose to discontinue a Unit Linked Insurance Plan, you are not entitled to any tax benefits.
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| · What are the Tax benefits available on medical insurance premiums? |
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| Under Sec 80D you will be able to claim tax benefits on premium paid for any medical/health insurance. Qualifying amounts under Section 80D is up to Rs. 15,000. However, a higher amount of up to Rs. 20,000 is allowed if the person, for whose health insurance the premium was paid, was resident and aged 65 years or more at any time during the financial year in which the premium was paid.
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| · Is Service Tax applicable on ULIP products? |
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| Service tax is applicable, on the risk cover & fund related charges towards management of investments of Unit Linked Insurance Products included in life insurance premium in accordance with Section 65(105)(zx) of Finance Act 1994, as amended by Finance (No.2) Act 2004 and Section 65(105)(zzzzf) of Finance Act 2008 (inserted w.e.f. May 16,2008) respectively, at the applicable rates and the same would get deducted by way of cancellation of units."Service tax is applicable, on the risk cover & fund related charges towards management of investments of Unit Linked Insurance Products included in life insurance premium in accordance with Section 65(105)(zx) of Finance Act 1994, as amended by Finance (No.2) Act 2004 and Section 65(105)(zzzzf) of Finance Act 2008 (inserted w.e.f. May 16,2008) respectively, at the applicable rates and the same would get deducted by way of cancellation of units.
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WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions. While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application. Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...
