Q: I am doing part-time jobwork in computer. I have an LIC policy. How can I save in insurance and tax planning?
Answer: Insurance premium is eligible for deduction under Sec 80C. Since we do not have any numbers here, we will just discuss the various methods of tax planning. Under Sec 80C, you can save upto 1 lakh by investing in Insurance/ ULIP premium, PPF investment (Up to 70,000) and medical insurance premium for self and parents ( under Sec 80D). If you have HRA and are living in a rented accomodation, you can claim HRA. If you have a home loan, you can claim the interest (up to 1.5 lakhs, if home is self occupied)
Shweta, Certified Financial Planner,
Expert @ InvestmentYogi