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 tax benefits. The real value of life insurance. Life insurance's most known benefit is the lump sum payment to protect your loved ones in the event of death. This is only half of the story if the beneficiaries are correctly listed during the application process (or upon review during the life of the policy).