As far as i know in once a year premium I can invest up to 100000 which will be deducted from my income but contained by single premium policy I will get rebate up to 20% of income sum assured means if I invest 100000 I will procure rebate on 20000 only, am I right?
The cross-question is in single premium policy if I invest 100000 and if it is short risk cover policy will I get the rates rebate?
Answers: You are right in note that under Section 80(c), you can procure rebate for all investments summing up to 1 lakh rs.
Note that Tax rebate is granted on the amount invested within the fund. So if u are investing 1 lakh in the current financial year, consequently u will get rebate simply on this amount. Rebates will not be given for the sum assured.
However for calculating the tax on the gain that u get from this fund, u should look at Capital Gains Tax. If the gain are obtained from investments for more than 1 year (generally ULIPs hold 3 yrs. lock in), then you are exempted from paying tariff on these gains. But if u redeem ur policy in a year and if u are getting some gains, consequently u have to pay cheque 15% of the gains as Short occupancy Capital Gain Tax
It is 20% of sum assured & not investment.
without risk policy is zilch but a pension plan & you will gain complete rebate. Understand the maturity & Taxation hint of pension plan in the past you go for these.
ULIP are not well brought-up investment due to charges assosiated.
The cross-question is in single premium policy if I invest 100000 and if it is short risk cover policy will I get the rates rebate?
Answers: You are right in note that under Section 80(c), you can procure rebate for all investments summing up to 1 lakh rs.
Note that Tax rebate is granted on the amount invested within the fund. So if u are investing 1 lakh in the current financial year, consequently u will get rebate simply on this amount. Rebates will not be given for the sum assured.
However for calculating the tax on the gain that u get from this fund, u should look at Capital Gains Tax. If the gain are obtained from investments for more than 1 year (generally ULIPs hold 3 yrs. lock in), then you are exempted from paying tariff on these gains. But if u redeem ur policy in a year and if u are getting some gains, consequently u have to pay cheque 15% of the gains as Short occupancy Capital Gain Tax
It is 20% of sum assured & not investment.
without risk policy is zilch but a pension plan & you will gain complete rebate. Understand the maturity & Taxation hint of pension plan in the past you go for these.
ULIP are not well brought-up investment due to charges assosiated.