How ULIP Plans Help You Save Tax Under Section 80C
That's where ULIP plans come in. Not only do they help you build long-term wealth and protect your family, but they also offer attractive tax benefits under Section 80C of the Income Tax Act.
Let's break it down: what ULIPs are, how they help you save tax, and why they could be a strategic addition to your financial toolkit.
ULIP stands for Unit Linked Insurance Plan. It's a dual-benefit financial product that combines: Life insurance: Financial protection for your loved ones
Market-linked investments: Equity, debt, or balanced funds to help you grow your money
So when you pay a premium, a portion goes toward life cover, and the rest is invested in funds of your choice.
Over time, this amount accumulates and can be used to meet long-term goals like buying a house, funding your child's education, or planning retirement.
If you're wondering which ULIP is right for you, this guide to the best ULIP plan can help you compare options.
ULIPs are one of the few financial instruments that offer triple tax benefits, which means savings at the time of investment, throughout the policy term, and even at maturity.
Here's how it works:
Premiums paid toward a ULIP plan are eligible for tax deduction under Section 80C, up to ₹1.5 lakh per financial year. This means the amount you invest reduces your taxable income, saving you money instantly.
Example:
If your taxable income is ₹10 lakh and you invest ₹1.5 lakh in a ULIP, your taxable income reduces to ₹8.5 lakh. That's a potential saving of up to ₹46,800 if you're in the 30% tax slab.
If you stay invested for the full policy term and meet the applicable conditions, the amount you receive at maturity is completely tax-free under Section 10(10D). This makes ULIPs one of the few investment options with exempt-exempt-exempt (EEE) status.
Conditions include: Annual premium should be less than ₹2.5 lakh (for policies issued after Feb 2021)
The policy must not be surrendered before five years
Unlike mutual funds, ULIPs allow you to switch between funds (equity to debt or vice versa) without triggering any tax liability. This makes them flexible and tax-efficient, especially during volatile market conditions.
While ELSS, PPF, and NPS are also popular tax-saving tools, ULIPs bring a unique mix of benefits: Insurance + Investment: You don't have to buy life cover and investment plans separately
Customisation: Choose your fund type and switch anytime
Goal-based saving: Ideal for 5–15 year horizons
Discipline: The 5-year lock-in encourages consistent, long-term investing
Tax benefits at every stage
To explore additional options and compare ULIPs with other tax-saving products, you can check this quick guide on how to save tax.
ULIPs are a good fit if you: Are looking for both life cover and long-term investment
Want to reduce taxable income while building a future corpus
Prefer flexibility over guaranteed returns
Are comfortable staying invested for 5+ years
Want to track and switch funds as per market conditions
ULIPs are especially useful for professionals in their late 20s to early 40s, when long-term goals (home, children, retirement) and tax-saving needs are both a priority.
Ritu is 30 and earns ₹12 lakh per year. She invests ₹1.5 lakh annually in a ULIP: Gets life cover of ₹25 lakh
Invests in equity for higher long-term returns
Saves ₹46,800 every year in taxes
Plans to use the maturity amount to fund her child's higher education
Over 15 years, she not only creates wealth but also enjoys tax relief and financial protection throughout. ULIPs have a 5-year lock-in. Withdrawals before that aren't allowed
Returns are market-linked, so they may fluctuate
Maturity proceeds are tax-free only if the premium and policy terms meet certain conditions
You may incur charges in the initial years (though they've reduced over time)
ULIPs aren't just about saving tax. They're about building wealth with a purpose, protecting your family, and doing it all in a tax-efficient way.
Yes, they require commitment. Yes, they come with a bit of market risk. But for those who want a smart, all-in-one solution for tax-saving, investing, and insurance, ULIPs offer a lot of value.
So instead of scrambling for last-minute tax proofs, consider choosing a plan that works for you , today and tomorrow.
TIME BUSINESS NEWS
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 days ago
- Yahoo
Eskay Mining Announces Non-Brokered Charity Flow-Through Private Placement of up to $2 million
TORONTO, ON / / August 1, 2025 / Eskay Mining Corp. ("Eskay" or the "Company") (TSXV:ESK)(OTC PINK:ESKYF)(Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce the offering of a non-brokered private placement of up to $2 million of flow-through units (the "Offering") to be sold to charitable purchasers (the "Charity FT Units") at a price of C$0.56 per Charity FT Unit. Each Charity FT Unit will consist of one common share of the Company (each, a "FT Share") and one-half of a common share purchase warrant, each of which qualifies as a "flow-through share" within the meaning of the Income Tax Act (Canada) (the "Tax Act"). Each full warrant (a "Warrant") shall entitle the holder to purchase one common share (a "Warrant Share") at a price of C$0.65 at any time on or before that date which is 24 months after the Closing Date (as herein defined). The gross proceeds from the sale of Charity FT Units will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Tax Act and "flow through mining expenditures" as defined in subsection 127(9) of the Tax Act, and for a subscriber who is a qualifying individual under the Income Tax Act (British Columbia) (the "BC Tax Act"), qualifies as a "BC flow-through mining expenditure" as defined in section 4.721(1) of the BC Tax Act ("Qualifying Expenditures"). The Qualifying Expenditures will be incurred on or before December 31, 2026, and renounced to the subscribers with an effective date not later than December 31, 2025, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of the Charity FT Units. Proceeds from the Offering will be expended on the Company's 100% controlled and consolidated Eskay Project in the heart of the Golden Triangle, British Columbia. The Offering is scheduled to close on or around August 22, 2025 (the "Closing Date" or "Closing") and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities issue will have a hold period of four months and one day from the closing of the Offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Charity FT Units, nor shall there be any sale of the Charity FT Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The Charity FT Units being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person. About Eskay Mining Corp: Eskay Mining Corp (TSX-V:ESK) is a TSX Venture Exchange listed company, headquartered in Toronto, Ontario. Eskay is an exploration company focused on the exploration and development of precious and base metals along the Eskay rift in a highly prolific region of northwest British Columbia known as the "Golden Triangle," 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (52,600 hectares). All material information on the Company may be found on its website at and on SEDAR+ at For further information, please contact: Mac Balkam T: 416 907 4020 President & Chief Executive Officer E: Mac@ Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements. SOURCE: Eskay Mining Corp. View the original press release on ACCESS Newswire Sign in to access your portfolio
Business Upturn
2 days ago
- Business Upturn
Coal India declares Rs 5.50 Interim Dividend for FY26
Coal India Limited (CIL) has declared a first interim dividend of ₹5.50 per share for the financial year 2025–26. The decision was approved at the board meeting held on July 31, 2025. The dividend will be paid to shareholders holding equity shares as of the record date, August 6, 2025. As per the Finance Act, 2020, dividends are taxable in the hands of shareholders, and CIL will deduct tax at source in accordance with Sections 194, 195, and 196D of the Income Tax Act, 1961. Shareholders are required to submit appropriate documents to claim exemptions or reduced TDS rates. Advertisement TDS Summary: Resident shareholders : Tax deducted at 10% (20% if PAN is not provided). Exemptions apply for income below ₹10,000 or with submission of valid Form 15G/15H . Mutual Funds, Insurance Companies, Exempt Entities : No TDS on submission of valid registration and exemption documents. Non-resident shareholders / FPIs / FIIs: TDS at 20% + surcharge/cess, or as per the applicable Tax Treaty on submission of PAN, TRC, Form 10F, and a self-declaration. Important Notes: PAN-Aadhaar linking is mandatory ; otherwise, TDS will be deducted at 20%. Shareholders must ensure updated bank account and contact details with the depository or registrar (Alankit Assignments Ltd). TDS certificates will be made available on the portal and will not be sent physically or by email.
Business Upturn
3 days ago
- Business Upturn
Nuvama shares fall another 3% as company confirms ongoing IT raid
By Aditya Bhagchandani Published on August 1, 2025, 10:37 IST Shares of Nuvama Wealth Management Ltd. slipped another 2.76% to ₹7,040 on Thursday, extending losses after the company officially confirmed that the Income Tax Department is conducting a survey at its premises. The decline follows concerns raised by media reports earlier in the week, linking the firm to the high-profile Jane Street trading case. In a regulatory filing, Nuvama acknowledged that the tax survey commenced on July 31, 2025, under Section 133A of the Income Tax Act, and remains underway. The company stated that it is fully cooperating with authorities, providing all requested documentation and disclosures. The clarification came in response to queries from the BSE after multiple news outlets reported that Nuvama's offices were being searched as part of a broader investigation into suspected stock market manipulation by global trading firm Jane Street. While no formal charges have been announced against Nuvama, investor sentiment appears shaken by the scrutiny. Nuvama acted as Jane Street's local execution partner in India. Jane Street, which was recently barred by SEBI for alleged manipulation of the Bank Nifty index through its derivative positions, was directed to return ₹4,844 crore in profits gained from its trades. The restrictions were lifted after the firm complied. Despite the ongoing survey, Nuvama emphasized that its operations remain unaffected. However, the confirmation of regulatory involvement has led to further pressure on the stock, which has now fallen more than 5% over two sessions. Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a certified financial advisor before making investment decisions. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
