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What is the 2010 tax exemption limit?

This is a question pertaining to the Rs 1,00,000 tax exemption limit for salaried class.?

  • My dad works as a senior manager(fin & Admn) in an MNC. He wants to invest Rs 1,00,000 in insurance this year & divide them between car, house, life & health insurance investments. Will he get full 1,00,000 tax exemption even after investing in non-life insurances ? Is the Rs 1,00,000 tax exemption available only for life insurance investment or is it available for only life & health insurance and not for property or car insurance ?

  • Answer:

    answer of my life is correct . premium paid to vehical and proporty will not get examption. premium paid for personal accidental policy will eligible for examption in addition to the above. we can save another 10,000/- as a critical ill ness rider paid on lic policies u/s 80DD.

Anand K at Yahoo! Answers Visit the source

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your dad can avail full Rs 1,00,000 tax exemption under sec. 80 c of income tax act. 1961 which allows us the exemption of Rs. 1,00,000 . under the following heads. 1.PROVIDENT FUND 2.LIFE INSURANCE PREMIUM 3.VPF 4. PPF 5.ELSS 7.PENSION FUND (80CCC) 8.ULIP 9.NSC 10.CTD 11.PRINCIPLE AMOUNT OF HSG LOAN 12.STAMP DUTY AND REGISTRATION CHARGES 13.FIXED DEPOSIT IN SCHEDULED BANK 14EDUCATION EXPENDITURE 15.INFRASTRUCTURE BONDS 16.INTEREST ON HOUSING LOAN the above head can be used to get the maximum exemption of section 80 c is Rs. 1,00,000. only

MYLIFE

Investment of Rs. 1,00,000 in insurance schemes pertaing to life, PF etc get exemption for salaried class.

surender p

Salaried can avail of tax breaks under sec 80(c) subject to a maximum contribution of Rs 100000 in a finanacial year. Various products qualifty for this exemption including FD's from Banks. Life insurance premia are part of this ceiling. However breaks on Medical insurance premiums can be availed of seperately under sec 80 (d) subject to a maximum of Rs 15000. Interest on housing loans can be booked as a loss from housing and property and can be booked seperately suject to a ceiling of Rs 150000 in any financial year. Principal repayment however is part of sec 80(c) and is subject to a max ceiling of Rs 20000. Same for Children's education subject to a ceiling of Rs 24000 for two children.

h_rs2000

No exemption is available for insurance other than life and health. But for life insurance the limit of rs 1 lakh can be availed whereas additionally Rs 15000 can be availed for health insurance. For life insurance if it is a single premium policy, the premium should not be more than Rs 20000 or 20% of sum assured. Morever all kinds of life insurance policies from all insurers qualify for this exemption.

akash_sky

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