Surcharge Cess  :  In the instances of persons secured under the above classifications having an aggregate salary surpassing one crore rupees, the wage tax as ascertained above be expanded by a surcharge at the rate of ten for every penny of such pay  tax. 

Training Cess  :  An extra surcharge called as 'Instruction Cess' is collected at the rate of 2% on the  measure of Income tax in all cases might be exacted. 

Auxiliary and Higher  :  An extra surcharge, called the "Optional and Higher Education Cess on salary - tax" at the rate of 1% of pay tax and surcharge (excluding the "Instruction Cess  on Income - tax") in all cases might be required. 

B] SOME IMPORTANT INCOME TAX BENEFITS AVAILABLE UNDER VARIOUS PLANS OF LIFE  INSURANCE ARE HIGHLIGHTED BELOW: 

1)  Deduction admissible from Income for installment of Life Insurance Premium  (Sec. 80c). 

(a) Life Insurance premia paid to impact or to keep in constrain a protection on the life of the assessee or on the life of the companion or any offspring of assessee & on account of HUF, premium paid on the life of any part thereof  under a protection  policy , ( other than an agreement for a conceded annuity,) issued at the very latest  the 31st day of  March  2012  should be qualified for reasoning just to the degree of 20% of the genuine capital whole guaranteed. 

(b) Life Insurance premia paid so as to impact or to keep in compel a protection on the life of the assessee or on the life of the mate or any offspring of assessee & on account of HUF, premium paid on the life of any part thereof , under an  protection policy , ( other than an agreement for a conceded annuity,) issued on or after  the first day of  April  2012  might be qualified for derivation just to the degree of 10% of the genuine capital aggregate guaranteed. 

Where the policy, issued on or after the first day of April, 2013, is for protection on life of any individual, who is - 

(i) an individual with incapacity or an individual with serious handicap as alluded to in area 80u, or 

(ii) experiencing malady or illness as pointed out in the tenets made under segment 80ddb, reasoning under this area is permitted just to the degree of 15% of the genuine capital total guaranteed. 

(c) Contribution to conceded annuity Plans to impact or to keep in constrain an agreement for conceded annuity,  on his own life or the life of his mate or any offspring of such individual, gave such contract does not hold a procurement to practice an  choice by the guaranteed to get a trade installment in for spendable dough lieu of the installment of annuity is qualified for reasoning. 

(d) Contribution to Annuity Plans - New Jeevan Dhara , New Jeevan Dhara - I & Jeevan Akshaya - VI 

2) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80ccc) 

A reasoning to a single person for any sum paid or saved by him from his taxable pay in the above  annuity plans for getting benefits (from the store set up by the Corporation under the Pension Scheme) is permitted. 

NOTE: The total measure of reasoning under u/s 80c, 80ccc & 80ccd(1) might not regardless surpass one lakh  Rupees . Nonetheless, there is no sectoral top i.e. the point of confinement of Rs.1,00,000/ - could be depleted by paying premium under any of the said areas. 



3) Deduction under segment 80d 

a)  Deduction permissible upto Rs.15,000/ - if a sum is paid to  keep in drive a protection on strength of assessee or his family (i.e. Life partner & subordinate youngsters) or any commitment made to the focal Government Health Scheme or by virtue of Preventive wellbeing check - up of the assessee or his family . 

b)  Additional derivation upto Rs.15,000/ - if a sum is paid to keep in drive a protection on strength of folks or  by virtue of Preventive wellbeing check - up of the guardian of the assessee, whether subordinate or not . 

c)  if there should arise an occurrence of HUF,  derivation suitable upto Rs.15,000/ - if a sum is paid to  keep in compel a protection on wellbeing of any part of that HUF 

d)  If the whole indicated in (an) or (b) or (c) is paid to impact or keep in drive a protection on the soundness of any individual determined in that who is a senior subject, then the reasoning accessible will be dependent upon Rs.20,000/ -. Here senior subject means the individual who is of sixty year or additionally throughout the past year. 

e)  e) in Case the sums are paid in (an) or (b) or (c) because of preventive wellbeing examination , the reasoning for such sums might be permitted to the degree it doesn't surpass in total Rs. 5,000/ -. 

f)  f) For the reason for conclusion , the installment might be made by 

i. i. Any mode, including money. In appreciation of any total paid by virtue of preventive wellbeing examination . 

ii. Any mode other than trade in for cold hard currency all different cases. 

g)  g) The protection as specified above should be as per the plan surrounded by 

i. i. The General Insurance Corporation of India as endorsed by the Central Government for this sake or; 

ii. Whatever viable safety net provider and sanction by the Insurance Regulatory and Development Authority. 

4)  Jeevan Aadhar Plan (Sec.80dd) : 

Reasoning from aggregate wage upto Rs.50000/ - passable on sum stored with LIC under Jeevan Aadhar Plan for support  of an impeded ward  (Rs.1,00,000/ - where incapacitated ward is experiencing serious inability) 

5) Exemption in admiration of compensation of annuity under Jeevan Suraksha &  Jeevan Nidhi Plans: 

Under Section 10(10a) (iii) of the Income-tax Act, any installment accepted by method for replacements of annuity out of the Jeevan Suraksha & Jeevan Nidhi Annuity plans is excluded from tax. 

6) Income tax exclusion on Maturity/Death Claims continues under Section 10(10D)




According to Section 10(10d) of the Income Tax Act, 1961, any total accepted under a Life Insurance Policy, including the aggregate apportioned by method for bonus on such policy is absolved from tax where the whole is gained as a death profit However, to get exception under above segment for entirety accepted other than death profit 

i) policy should not be issued under Section 80dd(3), or 

ii) policy might not be issued as a Keyman Insurance Policy, or 

iii) policy which has been issued on or after April 1, 2003 and if the premium paid in any of the years throughout the term of the policy might not surpass 20% of the Actual Capital Sum Assured. 

iv) policy which has been issued on or after April 1, 2012 and if the premium paid in any of the years throughout the term of the policy might not surpass 10% of the Actual Capital Sum Assured. 

Where the policy, issued on or after the first day of April, 2013, is for protection on life of any individual, who is— 

(an) an individual with inability or an individual with serious handicap as alluded to in area 80u, or 

(b) experiencing ailment or infirmity as tagged in the tenets made under area 80ddb, exception under this segment might be accessible just if the premium payable in any of the years is not more than 15% of the real Capital Sum guaranteed. 

Under the procurements of area 10(10d) of the Income-tax Act, 1961, Maturity/Death cases returns of life coverage policy, including the total allotted by method for bonus on such policy (other than sum to be discounted under Jeevan Aadhar Insurance Plan in the event of impeded ward predeceases the individual or sum accepted under a Keyman Insurance Plan) ,is exempted from salary  tax. However any entirety (excluding the premium paid by the assessee ) gained other than death assert under a protection policy issued on or after the first day of April 2003 yet at the very latest the 31st day of March, 2012 in admiration of which the premium payable for any of the years throughout the term of the policy surpasses twenty for every penny of the genuine capital total guaranteed will never again be exempted under this area . Further any whole (excluding the premium paid by the assessee ) accepted other than death assert under a protection policy issued on or after the first day of April 2012 in appreciation of which the premium payable for any of the years throughout the term of the policy surpasses ten for every penny of the genuine capital total guaranteed will never again be exempted under this area . Where the policy, issued on or after the first day of April, 2013, is for protection on life of any individual, who is- 

(i) an individual with handicap or an individual with serious incapacity as alluded to in segment 80u, or 

(ii) experiencing infection or illness as defined in the standards made under area 80ddb, if the premium payable for any of the years throughout the term of the policy surpasses fifteen percent of the real capital entirety guaranteed the absolution under this segment won't be accessible