Tax Planning is a very important part of an individual's financial planning. Nobody wants to give their hard earned money as taxes. Therefore planning for taxes is important so that one can get maximum advantage of all the provisions available under the Income Tax Act 1961

Insurance policies enjoy tax benefits under section 80C and section 10(10D), subject to conditions.

But tax savings should not be the sole reason to buy an insurance policy. An individual should focus on his goal planning as well and then buy the life insurance plan. Tax saving is incidental in nature. Therefore one should look at his needs and objectives also while buying an insurance.

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