| · Is there any Tax Benefit on the premium I pay for my life insurance policy? |
|
|
| 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.
|
| · What are the Tax Benefits in case I opt for a Pension Plan? |
|
|
| 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.
|
| · After the maturity of my policies, will the maturity proceeds be taxable? |
|
|
| 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.
|
| · If I pay the premium on policy for my wife/husband, can I claim Tax benefits? |
|
|
| 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.
|
| · If I purchase a Unit Linked Insurance Plan (ULIP) and I choose to discontinue my policy, can I claim any tax benefits? |
|
|
| If you chose to discontinue a Unit Linked Insurance Plan, you are not entitled to any tax benefits.
|
| · What are the Tax benefits available on medical insurance premiums? |
|
|
| 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.
|
| · Is Service Tax applicable on ULIP products? |
|
|
| 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.
|
What is BHIM? BHIM stands for Bharat Interface for Money , which is an easy way of transferring money from one bank account to an other via a smartphone using the Unified Payments Interface (UPI) platform . It is an instant payments application meant for sending money as well as requesting for payments. How is it different from UPI? BHIM is no different than UPI. But in the case of BHIM, customers don't have to download mobile applications of multiple banks, instead a single BHIM app downloaded from Android Play Store is sufficient. Other than that, payments can be made through a virtual payments ID or through account number and IFS code, same as UPI. What you need to use BHIM? BHIM can be used across an droid smartphones with version 4.0 and above, also it will be made available on iPhones and Windows smartphones very soon. Further, for feature phone users they need to use the USSD feature by dial ing *99#. Why was the need for BHIM felt when UPI is already in place? With various...
