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.
If you purchase Group Term Life Insurance on a âpre-taxâ basis and your coverage exceeds $50,000 (including the State Retirement Systemâs Death Benefit, if applicable), the IRS takes back those savings on amounts in excess of $50,000.