Is It Possible To Claim Tax Benefits For Tax Paid On Insurance Premium?
SME World|September 2019
Is It Possible To Claim Tax Benefits For Tax Paid On Insurance Premium?
Under Section 80C and U Section 80D of the Income Tax Act, the premium paid for life and medical insurance policies can be used to claim tax benefits. Now the question is, “Can the policyholders claim similar tax benefits for Goods and Service Tax (GST)?”
Rakesh Goyal

Before opting for any insurance policy, one must be aware and understand how much GST is applicable and whether the GST paid qualifies for getting tax benefits.

Moreover, one must take into account that, "Section 80C and Section 80D of Income Tax Act entitles specified taxpayers to claim deduction for the whole amount paid to the insurer for specified insurance schemes. GST (being an indirect tax) is charged or recovered by the supplier of services from the recipient with the actual value of service. Hence, a collective reading of income tax and GST laws would echo the paid amount to the insurer including applicable GST (that would be allowed as a deduction).”

For Health Insurance

As per the prevailing regulations, about 18% GST is charged on the premium paid for Health Insurance. Under Section 80D of the Income Tax Act, the tax benefit can be claimed for the payment made for health insurance policies.

articleRead

You can read up to 3 premium stories before you subscribe to Magzter GOLD

Log in, if you are already a subscriber

GoldLogo

Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines

READ THE ENTIRE ISSUE

September 2019