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 policies have no cash value but offer a fixed death benefit and often fixed premiums for the length of the term. Term life is sold in increments â usually 10, 20 or 30 years. You can purchase term life insurance in a variety of ways: directly from an insurance company, through an agent or online.