Tax Benefits of Super Income Plan in Shriram Life Insurance
- postedOn: 20 February 2023
- 999 Views
- 4 min read
A Super Income Plan (SIP) has multiple tax benefits, making it an attractive investment option. For a nominal fee, the policy's coverage can be expanded. The premiums paid during the policy's term can be claimed in taxes. The Super Income Plan's maturity benefits are eligible for tax deductions for investors.
A Super Income Plan is a policy through which an investor can get a monthly income and life insurance. A SIP plan is an investment option that comes with many benefits and features. Tax exemptions is one of the advantages of investing in a Super Income Plan. The SIP coverage can be enhanced through additional covers purchased separately for a nominal rate.
Shriram Life Super Income Plan offers a quick and easy application process. The policy works by paying a set amount of premiums for a fixed tenure, after which the investor will receive the Super Income Benefit. The benefit gives the investor a fixed income for the policy's tenure. The policy also has a maturity benefit and a death benefit, ensuring the policy holder and their family are covered by the plan.
When it comes to investments, many worry about the tax it may incur as that will affect the rate of returns. Let's explore how tax affects a Super Income Plan and what tax benefits are available on the policy.
How is Tax Charged on a Super Income Plan?
Investing in insurance is essential for everyone, especially for people who have dependent family members. All premiums paid and returns received from an investment or insurance are subject to tax according to the government's laws. When investing in any plan or policy, knowing the tax implications could help you save on taxes. Let's look at some of the taxability instances that are important to remember.
According to Section 80C of the Income Tax Act, 1961, any premium paid towards a life insurance plan can be claimed by filing income tax. In a Super Income Plan, this would mean that the tax deductions can be claimed against the premiums paid. The cut-off for the tax-deductible is set at Rs. 1.5 lakh per annum.
Tax exemptions on the maturity benefit and bonuses can be claimed according to Section 10 (10D) of the Income Tax Act. The eligibility for this income tax deduction requires the premium you pay to be less than 20% of the sum assured.
There are conditions under which Section 10 (10D) does not apply to maturity benefits. If the premium paid towards the policy is more than 10% of the sum assured, no tax benefits will be applicable. This fact is essential to remember when deciding the amount and tenure an investor needs to set before starting the insurance policy.
- Section 80C deductions
- Section 10 (10D) on maturity benefits
- When the maturity benefit is taxable
What are the tax benefits available with a Super Income Plan?
Super Income Plan requires an investor to pay a predetermined premium before the monthly income is dispensed. All premiums are subject to applicable taxes, which shall be paid by the investor along with the premiums due. An investor needs to keep track of the latest laws and guidelines around taxes, as the terms of the tax benefits are subject to change.
For Shriram Life Super Income Plan, the premium payment duration ranges from 10 to 25 years depending on the entry age; however, it cannot exceed 65 years. In accordance with Section 80C of the Income Tax (IT) Act of 1961, an investor may request a tax exemption on the premiums, if applicable. According to Section 10 (10D) of the IT Act, tax benefits on maturity returns may also be claimed. An investor should be aware that all tax benefits are subject to modification following current tax rules.
How to apply for a Super Income Plan
The application process for a Shriram Life Super Income Plan is simple and does not require many documents. An investor will be required to complete KYC (Know Your Customer) documentation before they can purchase the insurance. Any identity proof like an Aadhaar card or passport will be required for verification. It is also essential to have your PAN (Personal Account Number) Card details registered.
Visit the Shriram Life website to learn more about the Super Income Plan and fill in the required details to apply. Our representative will get in touch with the investor to help them understand the plan's benefits. They will also help the investor get the best rewards and returns for their investment and answer any queries about the policy.
Will a Super Income Plan help you save tax?
The Super Income Plan is a desirable option due to the tax advantages for the premiums and the maturity returns. These advantages enable investors to earn more money while avoiding high tax rates. According to the policy holder's tax category, a tax will be assessed on the premiums or maturity value.
Invest in a Shriram Life Super Income Plan to take advantage of these benefits and easily protect your future. Enter your information on the website to receive a price or get in touch with customer service to learn more about the Super Income Plan. The plan can assist you in developing a successful life strategy that incorporates an investment that offers security with life insurance.
- A Super Income Plan is an attractive investment option because it has multiple tax benefits.
- Additional coverage can be added to the policy for a nominal rate.
- Tax can be claimed against the premiums paid during the policy's tenure.
An investor can claim tax deductions on the maturity benefits of the Super Income Plan.
1. Can I claim tax benefits on insurance?
Yes, an investor can claim up to Rs. 1.5 lakhs per annum on premiums paid for a policy according to Section 80C of the Income Tax Act, 1961. Secure your future with a Shriram Life Super Income Plan and get tax benefits for your investment.
2. Can you claim tax benefits under Section 10 (10D)?
Yes, Section 10 (10D) of the Income Tax Act allows investors to claim tax deductions on maturity benefits.
3. How can I reduce my taxable income?
By investing in a Shriram Life Super Income Plan, an investor can claim multiple tax deductions, thereby reducing the income tax.