Tax benefit usually refers to tax laws that provide one with an option to reduce their tax bills, if they clear the eligibility requirements. Tax saving investment benefits can be in any form, like credit, exclusion or deduction in the tax bills. The amount of tax saved is also dependent on the tax benefit claimed as there are different forms of savings. Some of the tax saving investment benefits include:
- Exclusion from Tax
- Deduction of taxes
Some of the Tax benefits include:
- Tax benefits under section 80C of the Income Tax Act, 1961, may be available to an individual for the premiums paid subject to the conditions/limits specified therein.
- Benefits received under a life insurance policy may be exempted under section 10 (10D) of the Income Tax Act, 1961, subject to the conditions specified therein. Where the amount paid to the policyholder is not exempt under the provisions of section 10(10D), the said amount will be subject to tax deduction at source in accordance with provisions of section 194DA of the Act.
- For further details, please consult your tax advisor. Tax benefits are subject to change from time to time.