So this is the point of exemption. You have to check the
10% limit. If you are paying more than 10% premium, then
when you receive the endowment policy money, then
everything will be taxable.
What is the second point in this? If you have taken a
policy after 2013, and you have received the endowment
policy money, then will it be taxable or not?
How to check? In that case, check the 15% limit. If you are
paying premium, is it more than 15% of the capital sum
assured? If yes, then it will be taxable in your hands.
There are two types of life insurance policy. One is when
you expire, your family will get the money. In that case,
nothing is taxable.
The other is the endowment policy. In that case, you have
to check if the annual premium is more than 10% or 15%.
Is it more than 10% of the capital sum assured? If yes,
then it will be taxable in your hands. If no, then it will
be taxable in your hands.
If the annual premium is more than 10% of the capital sum
assured, then when you receive the endowment policy money,
it will be taxable in your hands.
In that case, you have to check if the annual premium is
more than 10% of the capital sum assured. If yes, then it
will be taxable in your hands.
The government has set a limit.
When the government set the limit, they made a law.
They said that the premium you pay, what deduction will you
get?
You will get the deduction of LIC premium.
What will be the maximum deduction of LIC premium? Will you
pay the actual premium or 10% or 15%?
If the policy is taken after 1-4-13, then it will be 15%.
If it is taken from 1-4-12 to 1-4-13, then it will be 10%.
Whichever is lower.
This is the point.
If the policy is taken after 1-4-13, then it will be 10%.
Whichever is lower, you will get a deduction of 1.5 lakh
rupees.
10 to 15 percent of that.
In real life, because sometime or the other you will buy
life insurance policy, so check this 10%-15% limit, what is
the benefit, benefit is in taking endowment policy, if
something
happens to you in between, then you will get money, and
suppose God doesn't do, it is good that God does this that
nothing happens to you, even if nothing happens to you,
still you will get that money in 10-11 years, there are
some benefits of taking endowment policy, yes, premium goes
a little more, see this, come to illustration no.3, then we
were saying
that before this, we were saying that if you contribute in
PPF, if you contribute in PPF, PPF is like a government
bank, there is an account of provident fund, and if you
deposit
money in it, then government gives you interest every year,
around 8-9% rate is going on,
I think around 8% rate is going on, government gives you
interest, money is deposited with
government, it has a lock-in period also, that before 30
years, you will not be able to withdraw that money, for
you, in a way, you got FD done and left, money is in whose
hands,
in government's hands, so money is not even in Mar, so what
is the limit of this also, 1.5 lakh rupees, sometimes it
happens that people have income of 10 lakhs, and you have
to show less income, okay, you have 10 lakhs, you deposit
1.5 lakhs in any government bank
in PPF, you will get 1.5 lakhs reduction there, this is the
point, see this, read it, illustration
no. 3, now see this, see this illustration, in this, it is
saying, contribution to PPF,
so he has contributed 1.5 lakhs, so he has contributed 1.5
lakhs, and he has filled insurance premium also, so 1.5
lakhs and 25,000, total how much is going on, 1.75 lakhs,
but in 80C, limit I have given is 1.5 lakhs, so 1.5 lakhs,
1.5 lakhs, 1.5 lakhs, 1.5 lakhs, 1.5 lakhs, 1.5 lakhs, 1.5
lakhs, 1.5 lakhs, 1.5 lakhs, in 80C.
Friends, in our country, few years back, there was no such
scheme, but now there is a scheme, since Modi government
brought this scheme in 2014-15, what happened was that
people used to discriminate girls.
So, Modi government said that this is wrong, we will give a
benefit to people, that whenever a girl is born, you open
an account in a bank, it will be named Sukanya Samriddhi
account, and the money you put in that account, you will
get a deduction for that, and how much deduction will you
get? Maximum limit was 1.5 lakh rupees.
That money, when it will be of 18 years, you can withdraw
that money, that money will be used in her education.
So, there were dual benefits, that money will be used in
girl's education, and her parents will get a deduction of
1.5 lakh rupees.
So, I think this was a very good thing they did. So, let's
read it.
It says that if you give money in Sukanya Samriddhi
account, subscription to such security of the central
government or any deposit scheme, as the central government
may notify, and accordingly, Sukanya Samriddhi has notified
our account, that if you deposit money here by the
individual in the name of any girl child, or any such girl
child for whom you are a legal guardian, if you are a legal
guardian, you have deposited money in the name of your
daughter, any girl child of the individual, or
whom she is a legal guardian, then
you will get a deduction for that also.
You have opened an account in the name of your daughter,
and every year you are depositing 1.5 lakh rupees, you will
get a deduction.
Answer is yes.
You have adopted a girl, she is a legal guardian, in her
name you have
opened a Sukanya Samriddhi account, like Sushmita Sen has
done, she is a heroine, she has adopted two girls, if you
open a Sukanya Samriddhi account in her name,
Sushmita Sen will get a deduction. Yes, this is the point.
This is a very good point, that parents of 1.5 lakh rupees
will also get a deduction, and there will be some savings
for that girl also.
These are some other points. I am telling you those points
which will be very useful in your practical life.
Because it is a never-ending list.
Come to the next point.
Payment of tuition fees.
As I was telling you in the beginning of this lecture,
I mean 2-3 lectures ago, that my gross total income,
I will have a lot of shares in the future, out of that
gross total income,
I will pay the insurance premium.
But out of that, my children's fees will also go.
Tuition fees.
Tuition fees doesn't mean coaching fees.
If you look at the school receipts, when you used to
deposit fees in the school, then there are different heads,
that tuition fees is this much, development fees is this
much, other charges is this much, uniform fees is this much.
So the tuition fees that the parent pays, basically the
tuition fees that the parent pays for education, in a
school, in a college, in a university, for full-time
education, so the tuition fees deduction, the parents will
get, how much will they get?
They will get 1.5 lakh rupees.
This is the point, friends.
Come and read this.
Payment of tuition fees to any university, college,
university means, for example, you are studying from Delhi
University, and you are studying in a college, there should
be no open correspondence course.
There should be a full-time college course.
So the tuition fees that you will pay to the college, the
total fees that you will pay, the element of tuition fees,
you can see that.
You will get the deduction for that.
If you go to a college, there is a school fee, or any other
educational institution, apart from DU, what else can you
get?
There is IIT, engineering colleges, medical colleges,
schools, if you pay your fees for all these things, but
what should happen?
Full-time education.
Full-time.
Will there be any vocational course?
Will there be tuition fees?
No.
There should be a full-time course.
You should attend classes properly.
You are taking a full-time education.
You are taking a degree.
You are studying from a recognized system.
Only then, you will get the deduction for the element of
tuition fees.
And how many children will you get?
Only two children.
You will get the deduction for the element of tuition fees.
This is the point.
Come.
This is the point.
This benefit is for the amount of tuition fees.
This is only for tuition fees.
That too for full-time education.
And it does not include payment towards development fees.
This does not come.
Donation or payment of similar nature.
This does not come.
This is only for tuition fees.
Let's move ahead.
Sir, what are you saying?
These things will be useful in your real life.
You will pay tuition fees for your children.
People do not know whether they will get the deduction or
not.
They pay and come.
Later, we, the chartered accountants, ask them, have you
paid tuition fees for your children?
They say, yes, I have paid.
Then reduce the amount.
That is why, whenever you will pay tuition fees for your
children, keep the slip carefully.
Keep the slip of LIC policy premium.
Keep the slip carefully.
Keep the slip of tuition fees carefully.
You will know how much deduction you have to take.
And if you still have a friend in your college, then go and
tell your parents to show their tuition fees in their ITR.
And deduct it from your income.
Come to the next point.
Sir, what a great thing you have said.
Sir, this is income tax.
Here, a person earns as much as he has knowledge.
The more knowledge, the more savings, the more money.
Keep learning.
I will not be short of knowledge.
See, friends, the next point is, you have taken a housing
loan.
You have repaid the housing loan.
So, you get the deduction for that as well.
Remember, friends, many centuries ago,
I made you do a chapter named
House Property.
There used to be a section,
Section 24.
In that, I had said that the interest you will pay, you
will get the deduction for that interest by going to
Section 24B.
It was about interest.
And I had said, we will cover principal in ATC.
So, we are covering principal here.
If you pay principal, you will get the deduction for ATC
here, friends.
In ATC,