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.
When someone is planning for the financial security of individuals in the event of his or her death; it helps to understand how death benefits from a life insurance policy can be classified as non-taxable or taxable. 1. Single payments from policies, not owned by the deceased are not subject to taxation.