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.
<strong>Taxable Death Benefits</strong>. 1. If the deceased was the owner of the life insurance policy, the value of the policy automatically becomes part of the deceasedâs estate and, depending on the value of the estate, subject to federal and applicable state unique estate taxes. 2.