Which type of Insurance help more in tax deduction?

I am earning more than 3 lacs per annual, now i have to pay tax but i have heard from my colleagues if i do invest in some insurance policy tax deduction will be less.So in which type of insurance should i invest?.

3 Replies to “Which type of Insurance help more in tax deduction?”

  1. You can get deduction of Rs 1 lakh under Section 80 C if you show proof of investment.

    Invest the balance amount after deducting your PF contribution for the year from 1 lakh.

    Go for a combination of PPF ( with SBI nearest branch) / ELSS in Mutual Funds / and PURE TERM PLAN for LIFE INSURANCE.

    Ideally you can get enough TERM cover for a annual premium of less than Rs 10,000.

    So PPF = say Rs 50,000 PF = 15000 Rs Insurance Rs 10,000 ( maximum) and Rs 25000 in HDFC TAX SAVER.

    You can also go for a MEDICLAIM policy from The New India Assurance Co . Deduction available Rs 15000 ( up to ) under section 80 D.

    Take this policy even if you have GROUP COVER in office.

  2. Health Insurance can help you to save more Taxes. However you must be there in Highest Tax Bracket then you can save up to Rs. 41, 715/- Per Year.

    Thanks and Good Luck

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