Employeeâs contribution â Section 80CCD (1) Allowed to an Individual who makes deposits to his/her Pension account. Maximum deduction allowed is 10% of salary (in case of taxpayer being an employee) or 10% of gross total income (in case of tax payer being self-employed) or Rs 1, 50,000 whichever less is.
This applies to current, former and retired employees. Premiums you pay for employees' group life insurance that is not group term insurance or optional dependent life insurance are also a taxable benefit.
Life insurance comes in two basic flavors: term and permanent. Term insurance is pure insurance, and as such, its only benefit is the death benefit. Permanent insurance includes whole life, universal life and variable life, and has living benefits â foremost of which is the accumulation of cash value. Trent explored this topic in his earlier post, âBuy Term Life Insurance.â.