Life insurance allows an individual to provide the financial security to the family member and protects them from uncertainties and eventualities of life. It helps you to save money for your future. Holder of the policy needs to pay a fixed amount of premium money to the insurance company on monthly, quarterly or annual basis. On maturity or death of the individual, pre-determined policy amount is paid to the insured people or the beneficiary. It offers a life cover in case of the life assured’s untimely death. You can also enjoy tax benefits on the premium paid as well as on the benefits you receive at the time of maturity. Under the Income Tax Act, 1961 (“the Act”) any sum paid by an individual to effect an insurance on the life of self, spouse or children is allowed as deduction u/s 80C upto Rs. 1,00,000. Premium paid in excess of 20% of capital sum assured is not eligible for deduction. Moreover, any sum received under a life insurance policy including the sum allocated by way of bonus is wholly exempt from tax u/s 10(10D) of the act. However, on maturity the following sum is not exempt from tax- • Any sum received from a policy u/s 80DD(3) or 80DDA(3); or • Any sum received under a Keyman Insurance Policy; or • Any sum received under an insurance policy issued on or after 1-4-2003 in respect of which the premium payable for any of the tears during the term of policy exceeds 20% of the actual sum assured, provided such sum is not received on the death of a person. You can also get deduction under Section 80CCC of the act for the contribution towards pension funds. It is allowed in respect of any amount paid to keep in force a contract for annuity plan of Life Insurance Corporation of India or any other specified insurer upto Rs. 1,00,000. Where deduction is allowed u/s 80CCC, deduction u/s 80C will not be available in respect of the payment made towards the annuity plan. Taxmantra.com which offers most comprehensive return filing service in India was launched to help individuals in their taxation matters. We just require your salary certificate/ other income details to file return of income. Taxmantra.com offers excellent tax support in addition to filing of return of income and comprehensive tax planning. At Taxmantra.com we do not put you at pain by asking to fill in long tax forms. You just need to fill in a form with basic details after attaching your salary certificate/ other income details, after which we take care to online tax return filing in most hassle free manner. So online income tax filing with taxmantra is obviously a better experience. Get in touch with us to file tax return online today and stay hassle free. Join us in pursuit of simplifying individual taxation! We welcome you to Taxmantra for easy online income tax filing / online return filing!