Under the Section 80CCC and Section 80CCD (1B) of the Income Tax Act 1961; you are eligible for availing tax deductions of up to Rs. 1,50,000 + 50,000 in a financial year. That said, tax deductions accrued against retirement savings have two components: #1. Using Life Insurance Saving Plan for Retirement Planning – Save Taxes under Section 80C and 10(10D) You have the investment instruments such as retirement plans and/or annuity plans offered by reputable life insurance companies. These tax-saving instruments can help you create a retirement corpus while availing tax benefits of up to Rs. 1,50,000 under Section 80C for the premiums paid towards life insurance savings plan and tax-free maturity proceeds under 10(10D). Let’s take an example: Rahul…
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