rajkotupdates.news tax saving pf fd and insurance tax relief (1)

If you have a home loan or a bank deposit product, you can write off money off as a benefit on your life insurance policy. As long as the amount you write off is more than 10% of the total sum insured, you can take advantage of tax relief. In an ideal scenario, you can avoid paying additional tax on the excess amount. Assume, for example, that you take out a PS100 000 home loan and you take out a PS1500 life insurance policy. In this example, you’d avoid an additional tax of up to $1600 – about 1800 in real terms.


Companies can claim FD and insurance tax relief if they purchase certain types of insurance products and deposit the money in an FD. In some cases, companies can claim tax deductions for FDs on the interest on the funds deposited in them. However, for other types of insurance products, such as life insurance, tax savings is available if a person buys an FD with the money they would otherwise pay on their premiums.

FDs require an investor to lock in the investment amount for a minimum of 5 years. The interest on the money invested in them is also taxed. FDs have many benefits, but they aren’t suitable for those who don’t earn enough to make investments in them. FDs, on the other hand, can be a great way to generate income without paying too much tax. You can invest in multiple banks and use the savings generated from the different accounts.

Insurance tax relief

If you have a fixed deposit with a bank and plan on locking the money for a maximum of 5 years, a tax saving FD is the perfect option for you. A tax saving FD is an interest-free investment which is locked for a fixed period of time. At the maturity, the amount owed on the policy will be tax-deductible, up to Rs 1.5 lakh.

FDs and insurance tax relief are a great way to reduce your income tax. Both FDs and life insurance policies have their benefits and drawbacks. The FD earns interest on your money, and insurance provides tax breaks on premiums. A company can claim the tax breaks on both these types of accounts. For example, an employer can claim FD and insurance tax relief if its employees are covered under the state pension plan.


The salary class in Rajkot should start planning early for the future. There are special investment schemes that save tax and prepare a solid fund for retirement. Tax saving FD is one of those. Compared to a normal FD, it has a 5-year lock-in period. In addition, you can claim tax deductions up to 1.5 lakhs on the amount you withdraw after five years.

A tax saving FD is an investment option that allows you to earn interest while getting tax breaks. You need to invest for at least five years, and the maximum tax deduction is Rs 1.5 lakh. FDs are tax deductible if the money is invested at least a year before the maturity date. It is also important to understand that tax breaks will be available after 2022, but only if the investor has an account that is at least three years old.


Investing in ELSS and tax-saving FDs has its advantages and disadvantages. FDs have a longer lock-in period of five years, while ELSS has a three-year lock-in period. Withdrawal from ELSS is allowed after three years, but not before the five-year lock-in period. However, if you are looking for flexibility and convenience, invest in ELSS through an SIP. The SIP will deduct an amount from your account automatically and invest it in ELSS funds. This is more convenient than staggered investment in ELSS funds.

Tax benefits are available for investing in ELSS funds under Section 80C of the Income Tax Act 1961. These savings can range up to Rs. 1.5 lakh a year for a person earning Rs. 12 lakh a year. This means that a person in the 30 percent tax bracket will save as much as Rs 46,350 a year. ELSS offers a high rate of growth and can be used as an excellent tool to generate wealth over the medium to long-term investment horizon.

LIC policy

In India, the capital gains tax rate has decreased to 15% since 2012. The highest rate was 50% in 2007. The good news is that you can still save tax by paying LIC premiums. The amount that you can deduct as a benefit from an LIC policy is dependent on your age, financial need, and the total amount of investments you have made. This tax saving opportunity will help you reduce your taxable income to a large extent.

Besides tax savings, LIC policies are also an investment opportunity for you. They provide the option to invest in stocks and bonds and earn tax benefits. Since 100% of premiums are invested up-front, you can enjoy the upside of market-linked returns without risking your capital. LIC policies also offer in-built life coverage. Moreover, LIC policies offer tax exemptions under section 80C of the Income Tax Act, 1961.

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