everybody will invest in LIC.
I know that I am in confusion . please explain me what it is?
2007-03-01 16:59:11 · 8 answers · asked by Vijay Soni 2 in Business & Finance ➔ Taxes ➔ India
You will have to calculate your taxable income first (that would be your annnual earnings less your investments/HRA/Medicals, etc.
If this amount is more than 1 lakh, you need to pay at 10% for the amount in excess of 1 lakh as tax. (similarly for more than 1.5 lakhs the tax is at 20% and for more than 2.5 lakhs is at 30%).
LIC is an investment and the amount invested in LIC for that year get exempted from tax. So you still would have to pay tax for the taxable income that you have.
2007-03-04 03:05:40 · answer #1 · answered by Ganesh 2 · 0⤊ 0⤋
LIC does not "refund" tax money - but you can claim tax exemption for the amount being invested in LIC. So if u pay a premium of rs.10,000 in one year, you can reduce that much amount on your income for calculating tax. So if you are already paying tax of 30,000 per year, you will save Rs.3000 because of your investment in LIC.
By the way - it need not be LIC. It can be any Life insurance, Postal Savings, Infrastructure bonds, Equity Linked Mutual funds (ELSS scheme) etc..
2007-03-01 17:10:14 · answer #2 · answered by r_ranjith 4 · 1⤊ 0⤋
LIC does not give refunds of taxes. The amount you pay as Insurance premium and the amounts you save under various approved savings schemes, up to a total of Rs.one lakh is deucted from the amount of your taxable income. Government is forgoing the tax amount, to enable you to save for your family's welfare.
2007-03-01 17:46:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I believe LIC doesnt give tax refund. You may get tax deduction based on their schemes or products that you invest.
-:)
2007-03-01 17:14:49 · answer #4 · answered by Pinacolada 2 · 0⤊ 0⤋
I were given time-honored on the thirty first and six days later i have been given a DD of today 2/8. The WMR device is so no longer one hundred% precise. a lot of people have their refund already and it continues to be declaring processing. better than likely in accordance with others I easily have considered u will likely get it no later than Tuesday. you may continually call an see how efficient the IR is being. solid success!
2016-11-26 23:38:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
not refund tax, insurance product gives tax examption that is more invest in insurance
2007-03-01 17:18:10 · answer #6 · answered by ravi 2 · 0⤊ 0⤋
Yes, you can deduct the premium 100% upto Rs.1,00,000 limit from your income.
r_ranjit and Cs r are correct.
2007-03-01 22:09:46 · answer #7 · answered by toknowmore 4 · 0⤊ 0⤋
it is depending limit per income
2007-03-01 17:33:08 · answer #8 · answered by keral 6 · 0⤊ 0⤋