Before the financial year ends in March, 2020, a lot of people will be in a rush to make those tax-saving investments. One way to save tax is by claiming deduction for life insurance premiums paid under section 80C of the Income- tax Act, 1961.
One can claim a deduction of up to Rs 1.5 lakh a financial year for the premium paid for yourself, your spouse, and your children. However, LIC is bringing the opportunity of paying the policy premium through credit card, for those who are short of cash.
This is especially useful for those last-minute tax-savers who do not have enough money in their bank accounts. In order to promote the usage of credit cards, LIC also announced that it has waived off charges on credit card payments.
In a statement the LIC said, “From December 1, 2019, any credit-card originated payments towards renewal premium, new premium, or repayment of loan and interest on loans against the policies will not attract any additional charges or convenience fee its parlance.”
