Income tax deductions, exemptions and GST as they apply to insurance in India. This topic has 6 entries.
Insurance and taxSection 80C and life insuranceSection 80C of the Income-tax Act, 1961 allows a deduction of up to ₹1.5 lakh a year for life insurance premiums and other savings; since April 2026 it is section 123 of the 2025 Act.Insurance and taxSection 80D and health insuranceSection 80D of the Income-tax Act, 1961 allows a deduction for health insurance premiums for self, family and parents, up to ₹25,000 or ₹50,000 each; it is now section 126 of the 2025 Act.Insurance and taxSection 10(10D)Section 10(10D) of the Income-tax Act, 1961 exempts life insurance maturity, surrender and death proceeds, subject to premium limits; since April 2026 it sits in Schedule II of the 2025 Act.Insurance and taxTaxation of ULIPsTaxation of ULIPs covers the premium deduction, tax-free maturity and death proceeds within premium limits, capital gains tax on high-premium ULIPs, and the 2025 GST exemption.Insurance and taxGST on insuranceGST on insurance is the goods and services tax on premiums; since 22 September 2025 individual life and health policies are exempt, while group and general insurance stay at 18%.Insurance and taxTDS on insurance payouts (Section 194DA)TDS on insurance payouts under section 194DA is the 2% tax an insurer deducts from the income part of a taxable life insurance payout; since April 2026 the rule sits in section 393(1) of the 2025 Act.
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