Tax Exemption Makes Insurance Profitable Investment

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Tax Exemption Makes Insurance Profitable
Investment
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• Insurance sector has provided
  people with quite a strong investing institution
  which benefits people in a long run. This
  investment makes sure maximum benefits are
  provided to people whenever in need, depending
  upon their preference and terms of the policy.
  Tax in legal language is defined as a financial
  charge which is levied upon by the government on
  the citizens or tax payers, either by the state
  or central government.

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• In case of any failure in
  paying this tax is considered to be a punishable
  offence and thus laws governing the land imply
  for the punishment. Not only government but also
  many administrative divisions levy taxes upon
  people. Taxes are either directly based or are
  indirect and have to be paid in monetary terms or
  by labour work. As per the economists, Tax is
  broadly defined as a non penal, but termed
  compulsory transferring of monetary assets or
  other resources from being in private to public
  sector , which is further levied upon the basis
  of criteria which is pre-determined and is
  without any reference to specific benefit which
  can be received.

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• Buying insurance plans not only guarantees
  healthy benefits in future but also helps in
  providing exemption from paying tax to the
  administration. Government has rebate to tax
  payers if they are investing money in buying
  insurance. Insurance plans under section 82, is
  tax free and tax payers dont have to pay taxes
  on insurance policies that they avail. For
  example in life insurance policies, Premiums
  which are paid for life insurance policies are
  tax exempted up to maximum Rs 1 lakh, under
  income tax law of 1961. In case of availing of
  benefits by the beneficiaries or policy holder is
  completely tax free under section 10(D) of income
  tax act of 1961.Similarly, Investing in ULIPS and
  market linked insurance plans, which mostly are
  bought to provide combined benefits of insurance
  as well as investments up to Rs 1 lakh are
  somewhat deductible from your taxable income. So
  is the benefit of tax exemption provided to
  pension plans? The option of tax rebate is
  provided to insurance plans to make them more
  favorable for Investment Insurance Policy and
  also to provide people with a rebate of not
  paying tax on their investments. Income tax law
  of 1961 shields investments of insurers against
  any payment of taxes.

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• Best insurance plans provide tax rebate, low
  premium rates and maximum benefits to people and
  thus attract maximum audience towards the concept
  of insurance investments. Save your money by
  investing it in the right source and exempt from
  paying tax.

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