If you are looking for a life insurance policy that offers tax benefits, then the Kotak e-Term Plan is a great option. This plan offers several tax benefits, which can help you save money on your taxes. In this blog post, we will discuss the tax benefits provided by the Kotak e-Term Plan. So, if you’re looking for a life insurance policy with significant tax benefits, then read on!
Kotak e-Term Plan Tax Benefit
When you invest in Kotak e-Term Plan, you can avail the following tax benefits:
- Section 80C of the Income Tax Act: You can get a deduction of up to ₹150,000 from your taxable income for the investment made in this plan. This deduction is available for both regular and ULIP plans.
- Section 10D of the Income Tax Act: Your maturity proceeds are tax-free.
So, these are the two primary tax benefits that you can avail by investing in Kotak e-Term Plan. Invest now and secure your family’s future. With a premium calculator, you can also calculate term insurance premium.
Term Insurance under Section 80C
Section 80C of the Income Tax Act allows you to claim a tax deduction on the premiums you paid for your term plan. This covers insurance costs for you, your partner, and any dependent kids. Your tax advantage under Section 80C is limited to a maximum of ₹1.5 Lakh.
Term Insurance under Section 10(10D)
The policyholder’s family or the designated beneficiary can receive the death benefit in the event of their demise. This death benefit sum is completely free from tax, according to Section 10(10D). Therefore, recipients may use this advantage to lower their tax obligations. The fact that the tax advantage has no upper bound is excellent news.
Exceptions to Tax Exemption Rule
In two scenarios, the recipient may be obligated to pay tax on the term insurance payout.
When the insurer says in their claim that the death benefit can’t be paid instantly after the deceased dies away is one example. In such cases, the insurer maintains the funds and disburses them at the end of the interest-bearing period.
The interest payment to the recipient is regarded as taxable income. The recipient should pay taxes on the interest accrued since the policyholder’s demise instead of the promised sum.
The Bottom Line
The Kotak e-Term plan offers many tax benefits that make it an attractive option for investors. These benefits include a deduction for the premium paid, as well as a death benefit that is exempt from taxation. In addition, the plan also offers flexibility in terms of investment options and withdrawal rules. Overall, the Kotak e-Term Plan is a good choice for those looking for a tax-efficient way to invest in their future.