How to maximise your tax saving by choosing the right insurance policy for yourself & family?

How to maximise your tax saving by choosing the right insurance policy for yourself & family?

The purpose of purchasing insurance is to provide the maximum level of assurance. Insurance is a legally binding agreement between the insurer and the insured that provides the best possible care to the insured, depending on the policy acquired. The fundamental need is to ensure that you and your loved ones are always safe, regardless of the circumstances.

Income tax deductions under sections 80D and 80C

Purchasing insurance coverage has numerous financial advantages. Aside from the extensive coverage provided by insurers, there are other tax advantages. Who doesn’t want the opportunity to save more money? Sections 80D and 80C of the Income Tax Act provide opportunities to save money on insurance.

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Section 80C contains a comprehensive list of investments for which you can claim a tax deduction when filing your taxes. Employee Provident Funds, Public Provident Funds, Life Insurance, Infrastructure Bonds, and so on are examples of these. These plans and investment opportunities have been listed, and you can pick the one that best suits your needs.

The tax benefits available to you under Section 80D of the Income Tax Act are based on the health insurance premiums you may have paid during the fiscal year. One of the most significant types of insurance is medical insurance. It assures that you are protected in the event of an accident or hospitalisation. The most important feature of a health insurance policy is cashless hospitalisation, which ensures that you receive the best treatment possible without delay.

Insurance policies for you and your family

Choosing the right insurance coverage is critical, and it should be done after evaluating all of your needs and variables. If you have dependents, the policy should include coverage for them as well. In such instances, a family insurance policy is preferable to an individual policy for everyone because it is less expensive and offers more advantages.

Life insurance policy for a better tomorrow

A life insurance policy is a contract that specifies that if the insured person dies, the insured’s family will get a specific amount of money. When the insured passes away, the family is taken care of. This assures that the family will not be short on cash and will be able to take their time to simplify their lives.

Health insurance policy

Health insurance comes in a variety of forms and can be tailored to meet the needs of persons with known pre-existing conditions. The premiums paid might be deducted from your taxes.

Packages are available based on the insured’s age, and benefits are available appropriately. The inclusion of OPD for the younger generation, while families or young couples benefit from maternity coverage. The elderly receive benefits tailored to their needs, such as reimbursement for alternative treatments like AYUSH, no room rent capping, and so on. When you get health insurance for yourself and your family, including your elderly parents, you can get a tax deduction of up to 1 lakh rupees.

FSDC meeting on September 3; to assess the economy and financial industry.

For a better life, get term insurance coverage.

Term insurance is a contract that promises to compensate the insured’s family in the event of the insured’s death. The difference between life insurance and term insurance is that with term insurance, you can only collect the money if the insured passes away. Term insurance has reduced premiums, but the insurer has no financial liability after the term ends, regardless of the date of death.

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Anchorage Infrastructure Investment Holding’s FDI request of Rs 15,000 crore has been approved by the CCEA.

Anchorage Infrastructure Investment Holding’s FDI request of Rs 15,000 crore has been approved by the CCEA.

The government approved a Rs 15,000-crore foreign direct investment (FDI) application for infrastructure investment from Anchorage Infrastructure Investment Holding Ltd, a subsidiary of a Canadian pension fund. The FDI proposal was accepted by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, for investment in infrastructure and construction-development industries.

Transport and logistics, as well as downstream investment in the airport sector and aviation-related industries and services, may be among them.

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According to an official statement, the transaction also comprises the transfer of a stake of Bangalore International Airport Limited to Anchorage and a Rs 950 crore investment by the 2726247 Ontariao Inc in Anchorage Infrastructure Investment Holding Ltd.

OAC is the administrator of OMERS, one of Canada’s largest defined benefit pension plans, and 2726247 Ontariao Inc is a wholly-owned subsidiary of OAC.

Tax Benefits Available For Startups 

The investment will provide a significant boost to the infrastructure and building industries, as well as the airport industry. It will bolster the Indian government’s ambition to construct world-class airports and transportation infrastructure through private partnerships, according to the statement.

The investment will also provide a major boost to the recently announced National Monetisation Pipeline, according to the announcement (NMP). It will assist support the leasing of state-owned infrastructure assets to private operators, which includes assets such as highways, trains, airports, sports stadiums, power transmission lines, and gas pipelines.

Anchorage Infrastructure Investment Holding Ltd proposes to invest downstream in some of the NMP-affected sectors.


The investment will also result in direct job creation, according to the statement, because the sector in which Anchorage Infrastructure Investment Holding Ltd proposes to make downstream investments is capital- and employment-intensive.

The investment will also create indirect jobs in the construction and related industries, according to the statement.

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Tax Benefits Available For Startups

Tax Benefits Available For Startups

All tax benefits are available to the startups only if they come under the criteria of an ‘Eligible Startup’.

So let’s try to understand the conditions to be met to qualify as an ‘Eligible Startup’.

Eligibility Criteria for Startup Recognition:

  • The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership.
  • Turnover should be less than INR 100 Crores in any of the previous financial years since incorporation.
  • An entity shall be considered as a startup up to 10 years from the date of its incorporation.
  •  
  • The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth.
  • An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Startup”

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Tax benefits allowed to Eligible Startups :

80 IAC Tax exemption

An Eligible startup (incorporated between 1 April 2016 to 31 March 2022) can avail a deduction of 100% of profits for a block of 3 years in the first 7 years of its incorporation. Such deduction would be available upon filing an application with DPIIT provided that that annual turnover does not exceed Rs.25 crores in any financial year.

Waiver from ‘Angel tax’ 

Domestic companies are required to issue their shares at fair market value (FMV) determined on a net assets value basis or discounted cash flow basis determined by the merchant banker. Any amount received by the company from residents in India in excess of FMV is liable to tax in the hands of the company (popularly known as ‘Angel tax’). Upon filing the requisite declaration with DPIIT and subject to certain conditions, Eligible startups are exempted from Angel tax.

Tax exemption to Individual/HUF on investment of long-term capital gain in equity shares of Eligible Startups u/s 54GB. 

The startups shall also use the amount invested to purchase assets and should not transfer assets purchased within 5 years from the date of its purchase.

1. Thus, if an individual or HUF sells a residential property and invests the capital gains to subscribe the 50% or more equity shares of the eligible startups, then tax on long term capital will be exempt provided that such shares are not sold or transferred within 5 years from the date of its acquisition.

2. The existing provisions u/s 54GB allows the exemption from tax on long-term capital gains on the sale of a residential property if such gains are invested in the small or medium enterprises as defined under the Micro, Small and Medium Enterprises Act, 2006. But now this section has been amended to include exemption on capital gains invested in eligible start-ups also.

What is e-RUPI and how it works?

Exemption from tax on Long-term capital gains

A new section 54 EE has been inserted in the Income Tax Act for the eligible startups to exempt their tax on a long-term capital gain if such a long-term capital gain or a part thereof is invested in a fund notified by the Central Government within a period of six months from the date of transfer of the asset.

The maximum amount that can be invested in the long-term specified asset is Rs 50 lakh. Such amount shall be remain invested in the specified fund for a period of 3 years. If withdrawn before 3 years, then the exemption will be revoked in the year in which money is withdrawn.

Other benefits available for Startups :

  • Simple process for registration of startup
  • Self-certification of compliance under Environment and Labour laws.
  • Easy access to funds through Alternate Investment Funds.
  • Easy winding up of Company within 90 days under Insolvency & Bankruptcy Code,2016.
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