5 Replies to “If I buy life insurance to save tax (my annual income is Rs. 4 Lac), how much premium annually I choose?”

  1. The maximum permissible exemption under section 80C is 100000. So after exemption of 2.00,000 you are still left with 2lac as taxable income. If insurance is the only saving for exemption under 80C then you can invest 1Lac as annual premium.

  2. you have to pay tax for lakhs (4- 2 ). in 2 lakh you can claim for 80c exemption for 1 LAKH.
    you can plan 80c with insurance , ppf, rd in post office etc.
    take a term plan for life insurance , and plan the remaing with ppf and rd
    for ppf interest rate is 8.8% and for rd its 8%. interest earned from both ppf and rd is tax free
    avoiding the tax by paying insurance premium is not a good option

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  3. If you buy life insurance to save tax then choose maximum annual premium of rs one lakh.
    But practically LIC premium p.a should not more than 5% of annual income if you are below 40 years.
    PPF, Mutual Funds, Acc. policy, mediclaim , FD, Gold, Land, Resi. house, shares are opportunities for better investment. I am not agent of any investment scheme but Financial consultant if you need may contact on 9422078718 mobile.

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