LIC Profile 2018

The Life Insurance Corporation of India came into existence on 1st September, 1956, with the objective of spreading life insurance more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost .

From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. In its 61 years of existence, LIC has grown from strength to strength be its customer base, agency network, branch office network, new business premium and has a significant role in spreading life insurance widely across the country.

Best LIC Tax Saving Plans to Invest

Just because you got a salary increment do you really have to pay more taxes? Not really! Make the right investments and you could save money and lower your tax slab. The Life Insurance Cooperation of India (LIC) has a number of tax saving plans that you could choose from. The Jeevan Anand Plan, Jeevan Labh, Jeevan Lakshya and Jeevan Umang are some of the best LIC policies to invest in. Each LIC tax saving plan is different. Some are dependent on the share market while others are non-linked. Some are limited premium payment plans while others are lifelong plans. Whatever your needs may be, there is an LIC plan for you.

Why apply for a Tax Saving Plan?

Our Tax Saving Plans have twin advantages. LIC Premium payments are tax-free. Therefore, they lower your taxable income and in turn the amount of tax you need to pay. They are also eligible for a tax rebate under section 80C of the 1961 Income Tax Act. The maximum rebate available under this section is Rs 1,50,000. Life Insurance Policies also help plan your future. After all, you can’t work forever but you will still need an income even after you retire. Depending on the LIC plan you apply for and the premiums paid, you will receive an annual income for as long as you live. In the event of your demise, this policy will safeguard your family’s interests. LIC Tax Saving Benefits

Tax benefits of having an LIC policy can be provided under many different sections.

• Section 80C: The premium paid towards these policies is exempted from taxes under section 80C.
• Section 80CCC: Policyholders who pay a premium towards annuity plans that guarantee a pension after retirement can take advantage of tax benefits under section 80CCC. This can be availed of by the individual assessee or HUF assessee.
• Section 80D: When you apply for an LIC tax saving plans in the name of a handicapped person, you may claim tax exemptions under section80D. This is applicable for individual assessees and HUF assessees. The limit for this deduction ranges from Rs 50,000 to Rs 1,00,000 depending on the severity of the handicap.
• Section 10(10D) Maturity benefits and death claims of an LIC policy are exempted from taxes under section 10(10D).

In simple terms, an LIC tax saving policy helps you plan your finances today and protects your income in the future as well.

Income Tax Slab for year 2017-2018(Assessment year 2018-19)

Income Slab	Below 60 years	Citizen (Above 60)	Super Senior Citizens (Above 80 Years )
Up to Rs.2,50,000	Nil	Nil	Nil
From Rs 2,50001 to RS 3,00,000	5%	Nil	Nil
From 3,50001 To Rs 5,00,000	5%	5%	Nil
From 500001 To Rs 10,00,000	20%	20%	20%
From 10,00001 and above	30%	30%	30%

Note :

The Tax slab rates may vary to current year.So given rates may change every year.

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