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.
Term Life Insurance. Term life insurance, which offers a guaranteed death benefit, covers the insured for a set period, such as 10, 15 or 20 years. After that, your payment obligations cease and the coverage ends. Generally, the term life premium and lump-sum death benefit are fixed amounts.