Calculators LIC plans New Pension Plus Tax
LIC New Pension Plus tax treatment
Premiums qualify for §80CCC deduction (up to ₹1.5L within the §80C ceiling, old regime only). At vesting: lump sum up to 60% is tax-free under §10(12A).
Tax treatment of New Pension Plus
Premiums qualify for §80CCC deduction (up to ₹1.5L within the §80C ceiling, old regime only). At vesting: lump sum up to 60% is tax-free under §10(12A). The mandatory 40% annuity corpus is used to purchase an annuity — the annuity income received is fully taxable as 'income from other sources' at your marginal slab rate. Compare with NPS: NPS has the same 60/40 vesting rule but lower charges and an additional ₹50,000 deduction under §80CCD(1B) not available here.
The 10× sum assured rule
For policies issued after 1 April 2012, both §80C deduction on premiums and §10(10D) exemption on maturity require the sum assured to be at least 10× the annual premium. Jeevan Labh's standard premium tables comfortably meet this — only watch out at very high entry ages where premium-to-SA ratios compress.
What changes from FY 2023-24
For non-ULIP life insurance policies issued on or after 1 April 2023 with annual premium above ₹5 lakh, maturity proceeds become taxable. Jeevan Labh premiums for typical sum-assured ranges (₹2 L–₹20 L) sit well below that threshold, so this rule rarely bites — but worth confirming for high-SA policies.
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