It is commonly known fact and widely utilized tool that life insurance is a best tax saving option. But only few know about the tax implications of maturity, surrender or death claim. So let us summarize them for a better understanding.

**1) Section 80C**-We all very Â well know that whatever premium you we towards life insurance can be shown under Sec 80C. But there are few basic conditions to qualify under this section.

Any premium paid towards a life insurance policy on self, spouse or kids and if the policy was issued **on or** **before 31st March 2012** Â then the eligible deduction under Sec 80C will be only 20% of the sum assured.

Let us say Mr.X took life insurance plan before 31st March 2012 with Sum Assured as Rs.3,00,000 term being 10 years and yearly premium Rs.65,000. But according to above rule only 20% of Sum Assured (in this case 20% of Rs.3,00,000 which is Rs.60,000) is eligible for tax deduction under Sec 80C. So Mr.X can avail benefit only up toÂ Rs.60, 000 but not Rs.65, 000.

Any premium paid towards a life insurance policy on self, spouse or kids and if the policy was issued **on or after 1st April 2012**, then eligible deduction under Sec 80C will be only 10% of the sum assured.

Let us say Mr.X took life insurance plan after 1st April 2012 with Sum Assured as Rs.3,00,000 term being 10 years and yearly premium Rs.65,000. But according to above rule only 10% of Sum Assured (in this case 10% of Rs.3,00,000 which is Rs.30,000)Â isÂ eligible for tax deduction under Sec 80C. So Mr.X can avail benefit onlyÂ up toÂ Rs.30,Â 000 but not whole Rs.65,Â 000.

**2) ****Sec 80CCC**-Any premiums paid by tax payer towards pension schemes like LIC’s New Jeevan Suraksha will be eligible for deduction under this section. Please note below two points here.

- This section only deals to the individual tax payer. Hence the contribution made in the name of spouse or kids will not be eligible. Â
- The aggregate amount of deduction under Sec80C, Sec80CCC and Sec 80CCD (1) shall not exceed Rs.1,00,000.

**3) Sec 10(10D)**-What will happen if two conditions mentioned above in Sec 80C not satisfied (means if the premium is above 20% of the sum assured for policies issued on or before 31st March 2012 or not 10% of the sum assured for policies issued on or after 1st April 2012)?

Excluding the death benefitÂ (like maturity or surrender of policies) all receivable will be taxable as per one’s individual tax slabs in respective years.

**Note**-Suppose in few life insurance plans during the tenure of the policy if the premium is below the specified limits (like 20% of SA for policies issued on or before 31st March 2012 or 10% of SA for policies issued on or after 1st April 2012) but exceeds any one year or for the few years of policy tenure then such maturity proceeds will also be taxable other than death claim.

**Sec 80C Reversal**-Benefit you availed under Sec80C will be reversed if your policy closed or terminated within 2 years for traditional policies and 5 years for ULIP products after the date of commencement of policy.

Kapil TiwariDear Basu, my relative had a Jeevan Saral policy. The date of commencement was 28/11/2007 and date of maturity was 28/11/2032.

The Maturity Sum Assured was Rs. 184725 and Death benefit Sum Assured was Rs. 125000.

Premium was Rs. 1500 quarterly, that is, Rs. 6000 per year.

The policy was surrendered in December 2018 and the surrender value received is Rs. 84317.

Please advise if the amount of Rs. 84317 is tax-free under section 10 (10D).

Thanks.

Kapil TiwariDear Basu, the policy was surrendered in December 2017 (not, December 2018). Sorry for the error.

Kapil TiwariThank you very much, Basu. I understand that the premium payable is well within 20% of the Sum Assured. Just for my knowledge, should the premium be within 20% of the (1) Maturity Sum Assured (Rs. 184725) or (2) Death benefit Sum Assured (Rs. 125000)?

Thanks.

Basavaraj TonagattiDear Kapil Sir,

MSA is just a maturity amount which in no way related Sum Assured. Also, MSA is applicable only to this particular product. Hence, Death Benefit Sum Assured should be considered but not MSA.

Kapil TiwariThank you very much, Basu.

Basavaraj TonagattiDear Kapil Sir,

As the policy was purchased before 31st March 2012 and also the premium payable was well within 20% of the Sum Assured, such surrender amount will be tax-free for your relative.

UMA SINGHHELLO SIR

I HAVE A JEEVAN-ANAND POLICY AND I COMPLETED 3 YEARS( INSTALLMENT IS 20854 ) NEXT DUE PREMIUM IS IN THIS MONTH OF FEB 2018 .NOW I HAVE TO SURRENDER MY POLICY ,HOW MUCH OF AMOUNT I GOT AFTER SURRENDER???????? THANKING YOU

Basavaraj TonagattiUma-Contact the LIC Branch.

Mrinal ChakrabortySir, i have surrendered my LIC and PLI policies last month. all the policies were more than 7 years old.

can you please tell me about the taxation of the surrender value I have received ?

will this amount be added to my income for current financial year ?

Basavaraj TonagattiMrinal-Both are tax-free.

Mrinal ChakrabortyOk Sir. Thank You so much.

NirmalSir,

I have had two LIC jeevan anand policies which I started on yr July 2009 and surrendered on Aug 2017.

Total surrender value received as 248000 .

I am not sure about taxation of this amount.

Am I suppose to pay tax on this ???

As per this article, Sec 80C Reversal-Benefit you availed under Sec80C will be reversed if your policy closed or terminated within 2 years for traditional policies and 5 years for ULIP products .

I am under 30% tax bracket.

Pl guide.

Basavaraj TonagattiNirmal-It is tax-free.

KondalHI,

My Self kondal, i had started LIC jeevan anand policy on Feb 2015 for 6 lakh sum around 35k per year.

So i just paid two terms(2 years) 2016 & 2017.

I decided to surrender it, as per above posts came to know that it is mandatory to complete 3 years.

So after paying next term in Feb 18 and immediately can i surrendar?

Still i need to wait until Feb 2019 ?

If i need to wait till Feb 2019, can i directly surrendar or do i need to pay 4th term and surrendar?

Can you answer please.

KondalSorry policy is started on Feb 2016

Basavaraj TonagattiKondal-Your policy will be eligible for surrender only when it completes 3 years. Hence, you have to pay the premiums for 3 years.

KondalThanks Basava,

But my question is my policy is started on feb 2016, so it will complete 3 years on feb 2019.

Without paying 4th term amount can i surrendar?

Will they ask to pay the amount as the due date came?

Basavaraj TonagattiKondal-Once the policy completes 3 years, then it is eligible for surrender. They not ask you any dues.

RAHUL KUMARHello Sir,

I have Jeevan Saral policy of LIC for 35 years term paying quarterly premium of Rs. 12250/-. Started in March 2012. Last premium was paid in December 2016. Now I want to surrender the policy. How much amount will I get back? And will it be taxable? What about tax exemption I have availed in FY2016-17?

Basavaraj TonagattiRahul-Check with the nearest branch regarding surrender values. You have not mentioned the sum assured. As the policy completed more than 2 years, the returns are tax free.

VenkatBasu, what a public service you are doing by this website. Hats off.

Now, if i am correctly reading what you are saying, even if I claimed Tax benefits till last year or this year under Sec 80 C for my LIC or ULIP policy, I can still surrender them provided the LIC regular policy has completed 2 years and the ULIP 5 years and above.

If so, I will run and surrender these useless policies. ðŸ™‚ Every year I have been giving 50K but for no reason. After reading your website I have realized how limited they are as investment policies. Have you written somewhere about ULIP too in detail?

Basavaraj TonagattiVenkat-Pleasure and go ahead. What information you are looking for in ULIP?

cehalI have a single premium “vima Bachat policy” of Rs 7,28,090 with effect from dt 15-10-2012. The sum assured is Rs 10,00,000. it will mature after 12 years. As per conditions of the policy LIC has to release 15% of sum assured in every 3 years as money back installment i.e. Rs 150000 in 2015. I received Rs 147000 after deducting TDS Rs 3000 in 2015 u/s 194DA. how should I Disclose my income ? Is It Rs 150000 ? if not 150000 then on which amount?

Basavaraj TonagattiCehal-First read above post properly. You will get the answer.

dkyou declare 150,000 income from other source and claim tds on itr

Sanjay Kumar SapraDear Basavaraj

My father in law has taken a single premium policy named ICICI Pru Lifelink Wealth SP by paying a single premium of Rs. 4,00,000/- with a sum assured of 125% of Premium i.e of Rs. 5,00,000/-.

After completion of five years he has surrendered the policy in January 2016 and got surrendered value as mentioned below

Amount Credited = 4,85,790.86

Tax Deducted @ 2% of 4,85,790.86 = 9,716/-

Net Surrendered Value = 4,76,074.86

My queries are

1. What amount is Taxable in this case – Rs. 4,85,790.86 or Rs 85,790.86.

2. What amount He should mention in his return as Income Rs. 4,85,790.86 or Rs 85,790.86.

3. If the entire amount i.e Rs. Rs. 4,85,790.86 is Non Taxable than why ICICI Prudential has deducted Rs. 9,716/- and deposited the same as TDS with IT Department. Can he has the reversal of this amount from IT Department.

Waiting for your quick revert.

Thanks & Regards

Sanjay Sapra

Basavaraj TonagattiSanjay-1) It is tax free if 5 years completed.

2) If they deducted TDS, then while filing IT return you can show it in exempt income and claim the TDS back.

Sanjay Kumar SapraDear Basavaraj

Thank you very much for your revert !

The policy (ICICI Pru LifeLink Wealth II) was ULIP along with Life Insurance cover of 125% (Rs. 5 Lakh) of Single Premium paid (Rs. 4 Lakh) and was issued on 17th November 2010 and surrendered after 17th November 2015 i.e. after five years.

Here Premium Paid (4 Lakh) is 80% of the actual sum assured which is Rs. 5 Lakh.

How you correlate your revert given in appended mail with following section

1. As per section 10(10D) in case of a life insurance policy issued after 1.4.2003 but on or before 31.3.2012 if the premium payable in any year exceeds 20% of the actual sum assured, then the policy proceeds would be taxable in the hands of the insured.

2. For policies issued on or after 1.4.2012, the above mentioned limit of 20% has been changed to 10%.

3. In case the premium payable in any year exceeds the prescribed percentage i.e. 10%, 15% or 20% of actual sum assured, as described in the preceding paragraphs, then the whole proceeds from the policy would get taxed in the year of receipt. However, in case of death of the insured, where his nominees receive the policy proceeds the same shall be tax free in the hands of the nominee(s) even if premium paid in any year crossed the prescribed percentage of sum assured.

As per above section the Policy proceeds has to be taxable.

I am really confused with this section, Will you please clarify how this section is not applicable on below said query.

Regards

Sanjay Sapra

Basavaraj TonagattiSanjay-The rules you mentioned are related to regular plans. Check the rules relation to single premium plans.

SareenHello Sir,

I had taken a one-time premium policy (ICICI Pru Lifelink Wealth SP) on 20/04/2011 (sum assured is Rs. 25,00,000 and one time premium is Rs.20,00,000 ) . At the time of surrender of the policy in 2016, I received a total amount of Rs. 25,00,000 . 2% of this was not deducted as TDS. Under section 10 (10D), what is the amount that should be considered as taxable income â€“ is it

a) Rs.5,00,000 which is the amount over and above the premium paid (Rs. 25,00,000 less Rs. 20,00,000)

b) Rs. 25,00,000 which is the total amount received on maturity of the policy

Thanks

Basavaraj TonagattiSaren-It is 5,00,000. Because that is the gain.

vikrant sharmaI have 3 LIC policies having total premium 42170{17134+16153+8883} with sum assured 5lakh-5lakh-2lakh and policies are new bima gold, bima gold and Endowment assurance policy.

I paid around 43 k premium{with late fee} in april month and will pay 2016 premium in feb 2016.

So my quiry is whether i would get tax deduction for Rs.85000(for both installment) or only for Rs.42170 in financial year 2015-16.

thanks

Basavaraj TonagattiVikrant-The same is explained above in details. Please take the pain to read it.

Lalit MohanI have a PLI with insured amount Rs. 10 lakh and premium of Rs.3651/- monthly.My Yearly income is around 6 lakh.

I want to know

a) whether Maturity amount (around 24lakh) will be taxable when the policy matures?

b) Will it be wise to convert my EA policy insured amount to Rs.20 lakh with premium Rs.6300/-montly.

Basavaraj TonagattiLalit-1) NO, 2) What you want to convert and what do you mean by EA?

B. R. BhaskarIn life insurance absolute assignment, can the assignee or assignee’s parent pay the premium and get benefits of IT 80C?

Basavaraj TonagattiBhaskar-In my view he can pay the premium but not allowed for Sec.80C benefit.

SridharSir

I had taken a two-premium policy (Jeevan Shree I) totaling Rs. 4,80,000 in 2005 (sum assured is 5,00,000 and accidental benefit is 5,00,000) and at the end of the policy period in 2015, I received a total amount of Rs. 7,30,000 including bonus. 2% of this was deducted as TDS. Under section 10 (10D), what is the amount that should be considered as taxable income – is it

a) Rs. 2,50,000 which is the amount over and above the premium paid (Rs. 7,30,000 less Rs. 4,80,000)

b) Rs. 2.30,000 which is the amount over and above the sum assured (Rs. 7,30,000 less Rs. 5,00,000)

c) Rs. 7,30,000 which is the total amount received on maturity of the policy

Thanks

Basavaraj TonagattiSridhar-Let them deduct the TDS. First check your yearly premium for the policy and start of year of policy and follow the rules which I explained above.

sridhar ramanathanThank you for your reply.

No doubts on the taxability. I would like to which amount will be taxable.

1. Total money received ie Rs 730000 minus the premium paid by me.

or

2. The entire money ie Rs.730000/- is it taxable.

Please reply

Basavaraj TonagattiSridhar-Entire money.

varinder singhSir, I redeem my icici prudential life time insurance policy on Feb 2015 . Sum assured in this policy is 500000 and premium is 100000 paid for 3 years only . I buy this policy in 2006 . on redeem I recieved 6 lakh rupees by account transfer . I want to know that this total redeem amount is taxable .please tell me am I pay tax on this amount for fy 2014-15 . thank you

Basavaraj TonagattiVarinder-You bought it before 31st March 2012. Also, the premium is 20% of Rs.5,00,000. Hence, it is tax free.

sharad kumarI had taken Jeevan saral policy in 2011 with annual prem of Rs. 60000.I have paid 4 instalments till now.Term plan is for 10 years and MSA is Rs. 152950.If the policy is surrendered now whether the tax benefit claimed under 80 C will have to be refunded ?. By the way how much I will receive if the policy is surrendede now?. Should I wait for complition of 5 years.?

Basavaraj TonagattiSharad-Wait for 5 years completion. You can be in touch with LIC branch regarding the amount you get back. Please read above post fully, I already explained the reversal conditions of Sec.80C.

Pala JoginandDear Sir, I have gone through all of your articles and found that you could help me on deciding my future. I wanted to know which Insurance plan will give maximum returns. My Savings inputs are as follows, Please let me know to select the best Income Return plans.

Monthly Investment Interested : 5000 – 10000

Term : 15 Years

Returns Expected : As higher as possible.

Basavaraj TonagattiPala-Please avoid INSURANCE PLANS for getting MAXIMUM RETURNS.

Akhilesh ShahCan also please let me know about keyman Insurance policy and Medical Indemnity Policies?

I believe Keyman ins. policies are term insurance and therefore there is only death benefit and no maturity benefit. Is it correct? because in recent amendments by finance act the proceeds of these policies are made taxable. How can the policy amt be assigned in favour of other? Pls elaborate with suitable example.

Also how Mediclaim Indemnity policy works? Its benefit etc?

I shall be grateful to your kind responses!!!

Basavaraj TonagattiAkhilesh-Keyman Insurance basically meant for business organization. Death benefit will go to the company but not to an individual. Medical Indemnity is still not an idea in India.

Akhilesh ShahThank you for your kind response sir

I believe, there are provisions where proceeds of keyman policy can be assigned in favour of employees too. I wanted to clear my doubt w.r.t. recent amendment in this context.

Akhilesh ShahCan you please tell us the logic (govts intension) why the maturity benefit is taxable if premium paid p.a. exceeds 20% or 10% or 15% of cap sum assured.

Also please give an example or circumstances where premium to be paid was below 20% or 10% or 15% of cap sum assured but person insured in one particular year paid more than the specified limit. How this is possible?

Basavaraj TonagattiAkhilesh-It is mooted to promote pure insurance products but not products like Insurance+Investment. In life insurance how the premium be high only in a single year which may cross 20%, 10% or 15% of a sum assured?

Akhilesh ShahThanks a ton for the response sir

gauravNow a days there are 2 types of sum assured offered by life insurance companies:

One is Baisc Sum Assured and Second is Death Sum Assured i.e., higher of 10 times of annualized premium or 7 times of annualized premium as per age or Baic Sum Assured or 105% of total premium paid

Now my question is for 10 (10D) benefit on Maturity and Death which amound will be considered whether the Basic Sum Assured or Death Sum Assured

Basavaraj TonagattiGaurav-It is Basic Sum Assured. Because the basic sum assured will be 10 times of your yearly premium.

Gulshan PahwaSir,

Plan 830 launched by LIC. What is tax treatment of plan 830 where premium payment term is 8 and 9 years and term is 12 years. In these cases, the premium is above 10% of Basic Sum Assured. Will it qualify for 80-C rebate? Is maturity proceeds taxable?

Basavaraj TonagattiGulshan-If that plan not qualify the above rules then definitely this will be taxable income. Check for premium and sum assured they offer to you

Gulshan PahwaIn all cases of 8 and 9 years premium paying term, term 12 years it is more than 10% of basic sum assured. However death benefits are 125% of Basic SA, 10 Annualized premium or 105% of all premium paid whichever is higher. Let me know whether the rule of 10% will be applied for tax rebate on basic sum assured or 125% of basic sum assured. AS you are well aware that LIC has started dedcuting 2% TDS on policies having premium more than 10% of Sum Assured. Please comment on the issue.

Basavaraj TonagattiGulshan-It will be on basic sum assured.

Gulshan PahwaThanks Basvaraj, it means the proceeds will be taxable and no tax benefits could be claimed u/s 80-C.

Raja sekhar reddyi paid a premium of rs 50000 on march 1st….can i show that as excemption while filing it returns for the financial year 2014-15???

Basavaraj TonagattiRaja-How can it be possible for last financial year premium be considered for this year?

hrushikeshHi, In FY 2013-2014 I have received a sum of ~50K from a money back policy of LIC (issued 2008) with annual premium <10% of the sum assured. So I guess it is tax exempt under section 10(10D). How to show this 50K income in the ITR2 for AY 2014-2015? I have been regularly claiming deductions for the premium paid under section 80C since AY 2009-2010 including current AY 2014-2015.

Thanks in advance. Regards.

Basavaraj TonagattiHrushikesh-When this policy was started, what is your yearly premium and sum assured?

MohanIf one takes “New Jeevan Anand” LIC policy after march 2014 would there be a rise in premium amount for a new customer ?

Basavaraj TonagattiMohan-There is no change in premium if you take today or after March. May be your agent is saying so to get as much as business withing this FY.

KaranHI,

Why the premium paid are not considered as expenses? Why the whole of the proceeds are taxable? Do you think that the current law is just?

Basavaraj TonagattiKaran-I am unable to understand your questions. To whom the premium paid must be considered as expenses and what is your logic behind this? Current law forces you to differentiate between Insurance and Investment in proper way.

HPIm currently a 30% tax bracket employee of software firm. 5 years back i had taken LIC’s Jeevan Aastha for 75000/-. This was onetime investment and was used as 80C tax saving. Now i got the policy matured and my return around 1,00,000/- . My question is should I show this maturity amount of 1L as income from other sources and pay 30% tax for this. My LIC agent always inditcate me that any return from LIC is NON taxable. After reading your posts, im in full confusion. I have taken many LIC single premium investments and using them for 80C. Please clarify me to continue using LIC for 80C investments ?

Basavaraj TonagattiHP-You have taken the policy before 31st March 2012, so according to rule your premium should be 20% of SA. This I think not with your policy. Hence whatever the maturity, will be taxable according to your tax rate and you need to show it while return filing.

AnandHi,

I am surrendering LIC Jeevan Saral. I will be getting 80,000 as surrender value. I had claimed the premium for tax exemption in last 3-4 years. On surrender do I need to pay any tax on 80,000.

Basavaraj TonagattiAnand-When you started this plan? What is the Sum Assured and Yearly premium?

AnandStarted the plan in 2010. SA is 6.25 lakhs and yearly premium is 30000.

Claimed tax benefit under 80cc only in AY 2010-2011.

Basavaraj TonagattiAnand-Your policy started before 31st March 2012 and premium is less than 20% of SA. Hence any receivable after the policy start of 2 years will be tax free and it will not impact your Sec 80c claimed tax benefit.

bankim DoshiWhat will be case when premium is below 20 % or say single premium , premium will be considered as long term income or normal business income

I like to specified this as in term of bima bachat plan of LIC, will maturity will be long term income and can take advantage of indexation or it will be added as normal income

Basavaraj TonagattiBankim-This tax benefit does not differentiate between single premium or regular premium. So if it crosses the permissible limit mentioned above then it will be treated as “Income from Other Source” on maturity and will be taxed accordingly in the year of receipt.

santuThank you. My premium is under 10% of SA so if no premium gets higher than 10% during Premium Paying term then my maturity amount would be total TAX exempted under 10 10(D).. Am I right?

Basavaraj TonagattiSantu-Yes you are right ðŸ™‚

raj kok thank you for your suggestion.

Basavaraj TonagattiRaj-Pleasure ðŸ™‚

raj kSorry its not 80D I am speaking about 10D which eligible under tax exemption at maturity time, then for above said example how much I should expect from my policy (112)?

Basavaraj TonagattiRaj-If you are saying relating to taxation, then whatever you receive from this policy will be tax free as your sum assured is Rs.5,00,000, premium is Rs.25,000 and it was purchased before 31st March 2012 (well within 20% of Sum Assured).

raj kThank You

I want to get clarity about Sec 80D, as in LIC or any other insurence company do not specify about which product you get specific sec 80D benefit & which product you dont get on final maturity income which receive by policy holder will be tax deduction or not.

so, I want to get which product gives us this benefit. ex:

If a person expect S.A Rs 500000 and if he is slab of 30% then may be hardly he receive 350000 after all tax cuttings.and also about policy (table No.112) is the policy has a benefit of Sec 10D and for S.A of Rs 500000 and premium of 25000 annually for 16 years and policy term 25 years. How much final I can Ecpect ?

awaiting to hear from you.

Basavaraj TonagattiRaj-Section 80D relate to health insurance premium but not to life insurance. Can you elaborate what you are saying about the second para, I think you are commenting about the old Jeevan Shree (which is not available now). Why you are comparing tax benefit to Sum Assured? (If a person expect S.A Rs 500000 and if he is slab of 30% then may be hardly he receives 350000 after all tax cuttings). This policy was prior to 31st March 2012, so 20% of sum assured will be eligible for deduction. So no need to worry as Rs.5,00,000 20% will be Rs.1,00,000 which is within the limit (your premium is Rs.25,000).

santuPPF says it is tax exempted under 10 10(D) and my LIfe insurance policy says the maturity amount would be exempted from Tax under 10 10(D). What does that mean then?

The policy sum assured is 5 times of premium. So sum assured is 1.5L and Premium was 30000 then may I eligible for 30k or 15K Tax deduction? Policy taken in Oct 2012

Basavaraj TonagattiSantu-Please don’t confuse yourself with PPF maturity to Life Insurance. PPF is the instrument where investment (maximum Rs.1,00,000), return and maturity are tax exempted. But same is not the case with Life Insurance. As your policy commencement date is after 1st April 2012, you can will get the only deduction of Rs.15,000 (10% of Sum Assured) but not Rs.30,000.

Manindercan you explain the amount deducted for tax deduction is dedutcted before calculating the tax slabe or after deduction tax slable is choosen?

Basavaraj TonagattiManinder-I think you are asking about TDS, if that is the case TDS is the tax what you paid. So it will not be included in your earnings. Hence will be considered after considering your tax slabs you are into and the tax you owe.

Maninderi am not asking about TDS and i not still need any tax exemption but for knowledge i want to know that the exemption which we got under different rools like 80c etc, when this exemption is deducted from over total income; is it deducted before selecting tax slab or after selecting the tax slab or after caculatign the tax and then amount is deducted from tax to be paid?

or their is diffrent rules for every conditions according to type of tax exemption?

if their any article about this topic please provide the link to article

thanks

Basavaraj TonagattiManinder-Deduction will be before arriving at one’s tax slab. There is only format of calculating and process is like below.

1) Income will be considered under different heads (Salary, Business, Incomefrom house property, Capital Gains and Income from other sources).

2) Set of losses for the current year and previous years.

3) Deductions like Sec 80C to Sec 80U.

4) So remaining will be the taxable income which will decide your tax slab.

5) Tax on net income will be calculated by adding cess (3%)

6) Less any TDS.

7) Final tax to be payable.