Is LIC Premium Covered Under Section 80C?
Feeling confused about tax savings and your LIC policy? Let’s clear the air! Many Indians wonder if LIC premiums qualify for Section 80C deductions—and the short answer is yes ✅
LIC Premiums and Section 80C
Premiums paid towards LIC life insurance policies are eligible for deductions under Section 80C of the Income Tax Act. You can claim this benefit if the policy is in your name, your spouse’s, or your child’s.
Here’s how it works:
Policies issued before 31st March 2012 → Premiums up to 20% of the sum assured qualify.
Policies issued after 1st April 2012 → Premiums up to 10% of the sum assured qualify.
Even LIC’s deferred annuity plans (without cash payment options) are eligible for Section 80C benefits.
Other Tax Benefits with LIC 🎯
✔ Section 80CCC – Deductions for contributions to LIC annuity/pension plans. ✔ Section 80D – Health insurance from LIC qualifies for deductions up to ₹25,000 (₹50,000 for senior citizens). Preventive check-ups up to ₹5,000 are also included. ✔ Section 80DD – Deductions for maintaining a dependent with disability (₹75,000 for 40–80% disability, ₹1,25,000 for 80%+ disability). LIC’s Jeevan Aadhar plan caters to this need. ✔ Section 10(10D) – Maturity or death benefits from LIC policies are tax-free (subject to certain conditions).
Important Points to Remember ⚠️
If your maturity/death benefit exceeds ₹1 lakh and doesn’t qualify under Section 10(10D), TDS @ 2% under Section 194DA will apply.
For payouts under ₹1 lakh, no TDS is deducted—but the amount is still taxable.
Final Thoughts 🌟
LIC policies are more than just tax-saving tools—they’re about financial protection and future security. Tax benefits are the bonus! 🎁
👉 For personalised advice on tax planning and investments, consult experts at uniqey by JJ Tax. Visit www.jjfintax.com and let us help you save smart while securing your future.













