I am thinking of investing in an endowment plan. Just wanted to confirm if I will get tax deduction for investing in Endowment Plans? Also is maturity benefit received from an endowment plan tax free?
As per Section 80C, the premiums you pay towards an endowment plan is eligible for tax deduction up to Rs. 1.5 lakhs. The maturity benefit is tax-free as per Section 10(10D) as long as the premium isn’t higher than 10% of the sum assured or if the sum assured is a minimum of ten times the premium.
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