ULIP Tax Benefits - Tax Saving Investment Option
For any successful investment, it is very important that there is considerable saving on applicable taxes. ULIPs give this benefit extensively and under Section 80C of the Income Tax Act, 1961, the payable premiums are exempt from tax. Furthermore, under Section 80C of the Act, there is a tax deduction of up to an upper capping of Rs. 1.5 Lac on the payable premiums towards a ULIP. As mentioned, there is a lock-in period of minimum five years before the subscriber can make a withdrawal. Under Section 10D of the Income Tax Act, the amount that the subscriber withdraws after the lock in period is over is also eligible for tax exemption. Therefore, Sections 80C and 10D allow the tax benefits to be operative in a ULIP and the same can be used for saving on taxes.
Any payable premium towards a ULIP is separately channelized towards maintaining the core parts of insurance cover and investment in the available fund options. The lock in period ensures that the corpus is maintained with the available tax benefits on payable premiums. Therefore, ULIPs are ideal as a both short-term as well as long term investment plan with the additional benefits on taxation.
To add to the tax saving benefits of ULIPs, as per the government mandate, the ULIPs have been exempt from LTCG (Long Term Capital Gains) taxation purview. Therefore, any gains made through capital investments in ULIPs are tax free. This feature has further enhanced the scope of tax benefits by investment in a ULIP. When viewed in comparison to the mutual funds (MFs), ULIPs score higher on the tax saving front as the capital gains made on equity related mutual funds are taxable by 10% (gains above Rs 1 Lac in a fiscal). This has made potential investors welcome the beneficial opportunity of investing in ULIPs and has made ULIPs ideal instruments for investment and building up the financial corpus over a period of years with the extra benefits of saving on applicable taxes.
HDFC Life offers HDFC Life Click 2 Invest ULIP an online unit linked comprehensively beneficial plan that gives tax benefits and at the same time provides market-linked returns on your investment in the various available fund options. For details, click on the mentioned link: https://www.hdfclife.com/savings-plans/sanchay-plus .
- 5 Best Tax Saving Investement Options for FY 2020-21
- How to save income tax with insurance
- Tips for Better Tax-Saving Plan
- Tax saving and investments - do they go hand in hand?
- How to Save Income Tax in India?
Income Tax Slab 2021-22
February 17, 2020
Income Tax Return Guide - Details You Should Know
November 07, 2016
Best Tax Saving Investment Options in 2022 (FY 2022-2023)
November 08, 2016
Subscribe to get the latest articles directly in your inbox
14 Best Investment Options In India
October 30, 2018
Short Term Investments: Top 11 Short Term Investment Options For 2022
November 08, 2016
Insurance vs Investment - Did You Get the Right Financial Plan?
November 05, 2018
Popular & Recent Articles
How to Plan for Retirement as Per your Age
"The thumb rule for retirement planning is - the earlier you start, the more you save. However, with age, your priorities change too. So, you need to factor in the cost of living in the present vis- a -vis future."
HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.
For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale.
|BEWARE OF SPURIOUS PHONE CALLS AND FICTIOUS/FRAUDULENT OFFERS
- term insurance plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- long term savings plan
- fixed maturity plan
- monthly income advantage plan
- income tax calculator
- pension calculator
- bmi calculator
- compound interest calculator
- term insurance calculator
- income tax
- tax saving investment options
- best investment plans
- benefits of term insurance calculator
- what is term insurance
- why to invest in life insurance
- tax planning for salaried employees
- how to choose best child insurance plan
- tips for buying retirement plan
- 1 crore term insurance
- importance of saving
- short term saving plans
- types of investment in india
- investment declaration