Whether investment in Senior Citizen Saving Scheme,Govt.of India,5yr plan with 9%P.A.interest rate is eligible for exemption upto Rs.1.0lakh per annum??
sir i have one house and bought another apptt by taking a loan i have repaid loan to a maximum extent .during this year i will have to pay interest of 40000 and principal of 60000.sofar i did not claim repayment of principal amount as the interest paid was sufficient to get tax exemption on the rent i get on the apptt leased out .this year can i claim interest as well as principal to have maximum benfit.l.ratnam
Re: Information
by N Narayan on Sep 30, 2009 11:58 AM
Term Insurance Plan is a Plan which does not have survival benefits .
To make it more easier for you to understand I will give you an example . When you take a normal Endownment / Moey Back or a more popular ULIP paln at the end of the policy maturity say after 15 / 20yrs you get a lumpsum amount , at the same time if the policy holder dies during the term of the policy the maturity amount bonus is paid to the nomineee . So even if one survives the term of the plicy or if one dies during the term monetary compensation takes place .
Now coming to term Plan , if a person takes a Term Plan for Sum Assured Rs 25 lakhs and term - 30 yrs , lets us assume that after 7 yrs the person dies of an accident or natural death then the sum of Rs 25 lakhs is paid to his/her nominee .How ever if the peron survives for 30 yrs and later the policy matures , the person does not get any money . In short you do not get survival benefits in a term Plan
The biggest advantage of a Term Plan is enlisted below
1) You can get a high cover by paying very low premium compared to other traditional insurance policies
For example if you take a normal endownment policy assuming you are 30 yrs of age and term is 25 yrs with sum assured being Rs 10 lakhs the annual premium would be Rs 45000 , whereas if you a take a Term Cover (assume you do not have any major medical illness or family history of major il ) then the premium would be around Rs 6000 for an year.
Re: Re: Information
by Arun Kumar on Sep 30, 2009 12:03 PM
I got all information regarding Term-Insurance, but I want to know that Is premuim paid for Term-Insurance is eligible for tax benifit?
Re: Information
by bhaskara rao on Sep 30, 2009 11:40 AM
No.Term insurance plans are for life coverage.There is no maturity at the end.so the premium will be low compared to endowment/money back policies.
If government is interested in implementing new tax code,it will greatly benefit salary holders.As per current tax structure, govt is giving tax benefits one hand and taking through LICs,NSCs, HR and etc.So better leave it to individuals itself to manage their money.Only one flaw in new tax code is that there is no mention on house loan tax benefit for rented ones i.e I can buy a house and rent it,i get tax benefit.This drives people who are already owning homes go for second ones and continue to get the tax benefits.This is not good.
