LIC policies give you tax benefits at three different stages - making them one of the most tax-efficient investments available in India.

Stage 1: Premium payment - Section 80C

  • ▸Annual LIC premium qualifies for deduction under Section 80C
  • ▸Maximum deduction: ₹1,50,000 per year
  • ▸Only premiums up to 10% of SA are eligible for deduction
  • ▸Example: SA ₹5L, premium ₹52,000 - full ₹52,000 is deductible

Who qualifies:

  • ▸Individual taxpayers (self, spouse, children)
  • ▸HUF (for HUF-owned policies)
  • ▸Annual income tax saving at 30% bracket: ₹52,000 × 30% = ₹15,600 per year

Stage 2: Maturity amount - Section 10(10D)

  • ▸Maturity proceeds from LIC policies are completely tax-free under Section 10(10D)
  • ▸Conditions:
    • ▸Premium must not exceed 10% of SA (for policies issued after April 2012)
    • ▸Policy must have been in force for at least 2 years
  • ▸No TDS deducted on maturity

Stage 3: Health rider premiums - Section 80D

  • ▸If you add a critical illness or health rider to your LIC policy
  • ▸Rider premium qualifies for 80D deduction (up to ₹25,000 for self, ₹50,000 for senior citizens)
  • ▸Separate from 80C limit

Death claim - always tax-free Under Section 10(10D), death claims are fully exempt regardless of SA amount or premium ratio.

GST on LIC premium:

  • ▸GST is NOT deductible under 80C - only the base premium before GST counts

Call 9415313434 to plan your LIC investment with maximum tax efficiency.