Unveiling the Tax Benefits of Term Insurance: A Comprehensive Guide to Section 80D
In the realm of financial planning, understanding tax benefits can be a game-changer. Delve into the intricacies of Section 80D, a provision that offers tax deductions for premiums paid towards term insurance policies, providing a dual advantage of financial protection and tax savings. Consider the scenario of Mr. Agarwal, a diligent professional who earns 12 lakhs annually. By opting for a term insurance plan with an annual premium of 20,000, he can claim a deduction under Section 80D, reducing his taxable income to 10 lakhs. This deduction not only shields him financially in case of unforeseen events but also allows him to save a significant amount on taxes.