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.
1 The policyâs death benefit is taxable for three years after transfer. 2  If you transfer an existing life insurance policy to a trust but die within the next three years, the death benefit is still subject to estate taxes. 3  To avoid this, you can have the trust purchase the policy from the start, so there is no transfer.