Criteria of lock in period in insurance products to get tax exemption under section 80c of Income Tax?



Please explain in detail the criteria of lock in period to get exemption under section 80c of income tax. also tell the link of the literature where I can study in detail the guide lines from income tax or IRDA regarding lock in period to this tax exemption

Criteria of lock in period in insurance products to get tax exemption under section 80c of Income Tax?
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2 Replies to “Criteria of lock in period in insurance products to get tax exemption under section 80c of Income Tax?”

  1. Any investment eligible for exemption under section 80C gets locked in for 3 years. Do you suppose that you can claim 20 to 30% rebate on your investment and then withdraw it the next day? Will the govt allow that? They want to use your money.
    But if you want your money back, here is something you can do:
    Look for a ELSS MF that declares 50% dividend in March.
    Invest Rs 1 Lac and opt for dividend pay out. If supposing that the cum dividend NAV is Rs 20/- then you will get 5000 units.
    Your dividend amount will be Rs 25000/-.
    If you are in the 30% income tax bracket then you save Rs 30,000/- IT.
    So from your invested amount you get back Rs 55000/- immediately.
    This is a hypothetical example. But that is exactly why your investment gets locked-in.






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