In order to incentivize insurance cover and investment/savings amongst masses, government of India offers tax rebates on many insurance policy premiums. Within the prescribed limits, your premium payment becomes non-taxable and your annual income is adjusted by the that amount to calculate the taxable income and your tax liability. Such insurance premium is said to be tax-deductible
Under the Indian Income Tax Act of 1961, several sections are attributed to defining the scope and extent of income tax rebates on various insurance policies, and other investment avenues. Here we will list all investment avenues that allow for tax rebate. However, details and examples will be for insurance-based options only.