At the end of the current year, tax season 2022 is available here in front of you. For many, there is the same taxing period available. The payers who pay the tax spend many hours sorting the tax receipts and invoices for the CA, but what amount of lakhs pay the taxpayers, and pay how much of the income to tax?
According to the union budget announcement, it contains no deductions for the slabs of the tax under the personal tax category. So, it means that you are required to start to look for the features for the new avenues under the relief of the income tax. So how about exploring insurance plans such as ulip policy?
ULIP (Unit Linked insurance plan)
ULIP plan is a hybrid plan that combines the benefits of investment plans and insurance plans. It enables you to invest your money to protect your family and keep them secure from an unknown accident or other uncertainties. The best thing about the ULIP is that it offers a great way to save on taxes.
ULIP tax-saving benefits
Here is some information on the importance of the ULIP, the reasons behind the choice of this plan by the taxpayers, the reason for investing in the ULIP wealth plan, and its benefits.
3 Advantages In the single plan
If you choose the ULIP policy, you automatically get insurance coverage and start the initiative towards the best investment life goals. ULIP policy provides you with all these facilities under a single plan.
Long-term tax benefits
One benefit of the ULIP is that it has a lock-in period of 5 years. It makes sure that for at least five years, you will be capable of taking the joy of saving tax on your premiums. Additionally, you can easily acquire more tax benefits by continuing with the long-term policy.
Tax-free partial withdrawals
In the event of sudden expenses, you can always easily use the ULIP policy. After 5 years under the policy, you can make your partial withdrawals under the section of the income tax act that is tax-free. However, make sure in your mind that the tax withdrawal amount is not more than 20% of your funded amount.
This article provides you with information about the ULIP and its tax benefits. If you understand the tax benefits under the ULIP policy, you will automatically know the importance of the ULIP and why many prefer to invest in it.
Additionally, we would like to tell you that you can customize your ULIP portfolio between debt and equity based on your risk appetite. To understand the tax benefits of the ULIP and secure your financial future under the ULIP policy.