[Solved] Which tax benefit is available on premiums paid towards ULIPs under the Income Tax Act? — Ans: Deduction under Section 80C | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

Which tax benefit is available on premiums paid towards ULIPs under the Income Tax Act?

ANo tax benefit available

BDeduction under Section 80D

CDeduction under Section 80C

DDeduction under Section 10(10D)

Step-by-Step Solution

Step 1: Identify tax provisions for ULIPs
Premiums paid towards ULIPs qualify for deduction under Section 80C of the Income Tax Act.
Final Answer:
Deduction under Section 80C → Option C
Quick Check:
Section 80C covers life insurance premiums including ULIPs, while Section 80D relates to health insurance and 10(10D) covers maturity proceeds tax exemption.

Quick Trick: Premiums under ULIPs get 80C deduction.

Common Mistakes:

MISTAKES

Confusing premium deduction with health insurance (80D) or maturity proceeds (10(10D)).

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Which tax benefit is available on premiums paid towards ULIPs under the Income Tax Act?