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Tax savings  

Here, in India, the investment in life insurance is mainly driven by the tax-savings purpose rather than a genuine call for insuring one's life. In most of the life insurance plans, a rebate of 20% is allowed on investment under Section-88.

The rates of Income Tax applicable under the Finance Act,1999 for the financial year 1999-2000 in case of an individual are as follows.

TOTAL INCOME( Rs) Rate Surcharge
Upto Rs 50,000 Nil -
Rs 50000- Rs 60000 10% Nil
Rs 60000- Rs 150000 20% 10%
Rs 150000 and Above 30% 10%

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