Unveiling the Tax Benefits of Term Insurance: A Comprehensive Guide to Section 80C
Term insurance tax benefit 80C is a crucial provision under the Income Tax Act, 1961, that offers significant tax savings to individuals who purchase term life insurance policies. It allows taxpayers to deduct the premiums paid towards their term insurance plan from their gross income before calculating taxable income. For instance, if an individual pays an annual premium of 100,000 for their term insurance, they can reduce their taxable income by the same amount, potentially leading to lower tax liability.