At present section 80C allows deduction on life insurance premium paid only when premium paid is less than 10% of the sum assured. However, said limit of 10% is applicable only for general category of taxpayers. To provide additional tax benefit to taxpayers suffering from severe disability or with specified ailment, the premium limit has been increased from 10% to 15%.
Other tax changes that are applicable for the current financial year 2013-14:
- Investment in Rajiv Gandhi Equity Saving Scheme
- Contribute to health schemes
- Property investment equals more deduction
- A house abroad, more returns
- Mismatch of TDS amount