Dear friends,
Do you want to take an LIC policy but do not have funds? No problem. You can still take the policy. You can get the premium (including the first premium in case of a new policy) paid out of your PF balance directly as provided in Para 62 of the Employees\' PF Scheme 1952 (extracts attached).
The only cost in this case is the interest that you could have earned on this amount in the PF account. However, the benefits are: firstly, risk is covered and secondly, deduction u/s 80C of the Income Tax Act can be claimed even without investing an additional amount from the pocket.
Regards, Location: Malappuram, India
Tags: PF account, income tax, LIC policy, PF balance, PF scheme, new policy, Income Tax Act, City-India-Malappuram, Country-India,
From India, Malappuram
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1454Do you want to take an LIC policy but do not have funds? No problem. You can still take the policy. You can get the premium (including the first premium in case of a new policy) paid out of your PF balance directly as provided in Para 62 of the Employees\' PF Scheme 1952 (extracts attached).
The only cost in this case is the interest that you could have earned on this amount in the PF account. However, the benefits are: firstly, risk is covered and secondly, deduction u/s 80C of the Income Tax Act can be claimed even without investing an additional amount from the pocket.
Regards, Location: Malappuram, India
Tags: PF account, income tax, LIC policy, PF balance, PF scheme, new policy, Income Tax Act, City-India-Malappuram, Country-India,
From India, Malappuram
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Using PF Balance to Pay LIC Premiums
🔍 Employees can utilize their PF balance to pay for LIC premiums as per Para 62 of the Employees' PF Scheme 1952. This facility allows individuals to cover the premium amount, including the first premium for new policies, directly from their PF balance. While the only drawback is the missed interest on the withdrawn amount, the benefits include risk coverage and the ability to claim deductions under section 80C of the Income Tax Act without additional personal investment.
Steps to Utilize PF Balance for LIC Premiums
1. Check your PF balance: Verify the available balance in your PF account that can be utilized for LIC premium payment.
2. Understand the process: Familiarize yourself with the specific guidelines outlined in Para 62 of the Employees' PF Scheme 1952.
3. Contact LIC provider: Inform your LIC provider about your intention to pay the premium using your PF balance and follow their instructions.
4. Complete necessary paperwork: Fill out any required forms or documentation to authorize the withdrawal from your PF account for the LIC premium.
5. Track deductions: Ensure that the premium amount is deducted from your PF balance and credited to your LIC policy accordingly.
6. Tax benefits: Take advantage of the tax benefits available under section 80C of the Income Tax Act by claiming the premium amount paid from your PF balance.
By leveraging your PF balance for LIC premiums, employees can secure insurance coverage without immediate financial strain, while also optimizing tax savings.
From India, Gurugram
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🔍 Employees can utilize their PF balance to pay for LIC premiums as per Para 62 of the Employees' PF Scheme 1952. This facility allows individuals to cover the premium amount, including the first premium for new policies, directly from their PF balance. While the only drawback is the missed interest on the withdrawn amount, the benefits include risk coverage and the ability to claim deductions under section 80C of the Income Tax Act without additional personal investment.
Steps to Utilize PF Balance for LIC Premiums
1. Check your PF balance: Verify the available balance in your PF account that can be utilized for LIC premium payment.
2. Understand the process: Familiarize yourself with the specific guidelines outlined in Para 62 of the Employees' PF Scheme 1952.
3. Contact LIC provider: Inform your LIC provider about your intention to pay the premium using your PF balance and follow their instructions.
4. Complete necessary paperwork: Fill out any required forms or documentation to authorize the withdrawal from your PF account for the LIC premium.
5. Track deductions: Ensure that the premium amount is deducted from your PF balance and credited to your LIC policy accordingly.
6. Tax benefits: Take advantage of the tax benefits available under section 80C of the Income Tax Act by claiming the premium amount paid from your PF balance.
By leveraging your PF balance for LIC premiums, employees can secure insurance coverage without immediate financial strain, while also optimizing tax savings.
From India, Gurugram
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