Tax Benefits of the Childsurance Plan
The Childsurance Plan gives you attractive tax benefits
Please note that the following is only for your information and you should seek tax advice from your tax advisor. Please also note that tax laws may change from time to time and, therefore, the terms and conditions, as also the benefits may change.
Tax Deduction on Contributions
Under Section 80C of the Income Tax Act, 1961, the premiums you pay towards your policy are eligible for deduction from your income to the extent of 10% of the actual capital sum assured*, subject to a limit of Rs. 1,00,000 per year.
Under Section 10(10D) of the Income Tax Act, 1961, the benefits you will receive under your policy will qualify for tax exemption, provided the premiums payable in any of the years during the policy term do not exceed 10% of the actual capital sum assured*. In case this condition is not fulfilled, the benefits you will receive will be subject to tax. However, the death benefit is tax-free under Section 10 (10D) of the Income Tax Act, 1961.
You are advised to consult your tax advisor for details. Please note that tax laws may change from time to time, and tax benefits applicable will be as per prevailing tax laws.
*Actual Capital Sum Assured:
It is the minimum amount assured under the policy on death at any time during the term of the policy, not taking into account the value of any premium agreed to be returned or any benefit by way of bonus or otherwise which is to be received by any person under the policy over and above the sum actually assured.
No Tax Deduction at Source
There is no tax deduction at source.