impact of dtc on life insurance
Question:Right now the single premium paid under Jeevan Akshay Scheme of LIC which entitles you to receive annuity for life is exempt from Tax up to Rs 1 Lac under Sec 80C.Will the same exemption continue from 1/4/2012 when the DTC comes into effect?
Answer:Hello Murthy, the new DTC will be applicable only to Life Insurance policies taken after 1/04/2012. All the existing Life insurance policies continue to enjoy the tax benefits up to 1 Lac till the completion of the policy term. So, you will continue to reap the tax benefits u/s 80C up to 1 Lac