LIC policy Premium Paid Statement for Income Tax Filing and account keeping

LIC Premium Paid Statement for Income Tax Filing

Filing income tax returns is an essential financial responsibility for every taxpayer. One critical aspect of this process is documenting the premiums paid for life insurance policies, such as those offered by the Life Insurance Corporation (LIC) of India. A LIC Premium Paid Statement helps in claiming tax deductions, ensuring that you benefit fully from the tax-saving opportunities provided by the Income Tax Act.

Why Tax Filing is Important

Filing your income tax returns accurately and on time is crucial for several reasons:

1. Legal Compliance: It is a legal obligation for every eligible individual to file their income tax returns.
2. Avoiding Penalties: Timely tax filing helps in avoiding penalties and interest on late payments.
3. Claiming Refunds: If excess tax has been deducted at source, filing a return is necessary to claim a refund.
4. Loan Approvals: Banks often require income tax returns for loan approvals, making it a key document for financial credibility.

Section 80C and Section 10 (10D)

1. Section 80C: This section of the Income Tax Act allows deductions up to ₹1.5 lakhs per annum on premiums paid for life insurance policies. It includes LIC policies, public provident fund (PPF), and other specified investments.
2. Section 10(10D): This section provides for tax exemption on the maturity proceeds of life insurance policies, provided certain conditions are met, making the sum received tax-free.

How to Get Your LIC Premium Paid Statement

1. Online Portal: Log in to the official LIC website and navigate to the ‘Policy Status’ section. Select the ‘Premium Paid Certificate’ option to download the statement.
2. Email Request: Send an email to customercare@licindia.com with your policy details to receive the statement.
3. Call for Assistance: For a consolidated premium statement for all your LIC policies, call Shivakumar at 9886568000. This service simplifies tracking multiple policies and ensures you have all necessary documents for tax filing.

Obtaining your LIC Premium Paid Statement and filing your taxes correctly can significantly impact your financial health. It ensures you benefit from tax deductions and exemptions, leading to substantial savings. Make sure to gather all relevant documents and seek assistance if needed to streamline the process.