Hi, I am planning to take SBI- Smart Scholar plan for my daughter who is 5 year old. I am planning put an annual investment of Rs. 1,00,000/- . Will there is be a tax benefit for this annual investment other than 80C. Because my 80C is already filled up with my EPF which is more than 1.5 lac. I checked in a few websites that SBI-Smart scholar can be tax benefitted under 10D. is it true? can I claim tax redemption under 10D for SBI-Smart scholar ?
I don't think there is any such section as 10D.
There is one section 10(10D) which is for exempt income from life insurance policy.
Any which ways section 10 covers exempt income and not deduction from income.
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Thank you
Thanks for the reply! So can I include the investment in SBI Smart Scholar/ SBI Smart Champ in any other tax sections other than 80C?
In my view this will be covered under 80C only.
Maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
Section 10(10D) exemption will come unto picture when you receive the money from Lic at the time of maturity.
No, at the time of investment you cannot put it in section other than 80C. Its eligible only for 80C deduction.
Hi
Section 10D is applicable on maturity value i.e. on maturity it will not be taxable.
Hi
At the time you making investment you will get deduction under section 80C.
All the premiums paid towards the policy premium is eligible for Income Tax Benefit up to Rs 1.5 lakhs per annum under section 80C of the Income Tax Act and the maturity benefit would be tax-free under section 10(10)D of the Income Tax Act provided the sum insured is at least 10 times the annual premium for all the years.
Therefore you cannot claim the investment in any other section other than sec 80C
Hello,
At the time of investment in this plan, the tax exemption would be available u/s. 80C. You won't be able to claim it in any other section.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Sec. 10(10D) exemption would be available at the time of maturity or surrender.
Dear Sir,
Hope you are doing well !!
At the time of investment, you need to take deduction u/s 80C.
At the time of maturity, you need to take benefit u/s 10(10D).
No I don't think so
Dear Sir,
All the premiums paid towards the policy premium is eligible for Income Tax Benefit up to Rs 1.5 lakhs per annum under section 80C of the Income Tax Act and the maturity benefit would be tax-free under section 10(10)D of the Income Tax Act provided the sum insured is at least 10 times the annual premium for all the years.
Thanks and Regards
Shiv Kumar Agarwal
