Tax Benefits
For Employer
The cash equivalent of the leave Encashment Benefit as and when paid by the employer is deductible from his income under section 43B (f) of the Income Tax Act, 1961.
For Employee
Under Section 10(10AA) of the Income Tax Act, 1961,
- For Government employees, the leave encashment benefits received at the time of retirement are tax free
- For non-Government employees, leave encashment benefits are exempt from taxes subject to the least of the following amounts
- Rs 3 lakh
- Ten months’ average salary - Average salary implies the average of the salary drawn during the last ten months prior to retirement.
- Cash equivalent of salary in respect of the leave due at the time of retirement
- Leave encashment actually received at the time of retirement
- Leave Salary paid to legal heirs of deceased employee in respect of privilege leave standing to the credit of such employee at the time of death is exempt from tax
Note: Tax benefits are subject to change in the tax laws. You are advised to consult your tax advisor for details.
Risk Factors
- Unit Linked Insurance Products are different from traditional insurance policies and are subject to risk factors
- The premium paid in Unit Linked Insurance policies are subject to investment risk associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market and insured is responsible for his/ her decisions
- Kotak Mahindra Life Insurance Company Ltd. (Formerly known as Kotak Mahindra Life Insurance Company Ltd.) is only the name of the company and Kotak Leave Encashment Group Plan is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns
- The various funds offered under this contract are the name of the funds and do not in any way indicate the quality of these funds, their future prospects and returns
- The past performance of other funds of the Company is not necessarily indicative of the future performance of the funds.
- Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document of the insurer. All benefits payable under the policy are subject to the tax laws and other financial enactments, in force from time to time
Terms and conditions
Kotak Leave Encashment Group Plan – UIN No: 107L088V02, Form No: L088 ; Ref No: KLI/17-18/E-WEB/727
Regd. Office:
Kotak Mahindra Life Insurance Company Ltd.,
Reg No. 107
CIN : U66030MH2000PLC128503
8th Floor, Plot # C- 12, G- Block, BKC,
Bandra (E), Mumbai - 400051
Toll Free: 1800 120 7856 (8 am to 10 pm)
Website: https://www.kotaklife.com
Email: kli.groupoperations@kotak.com
SMS KLIFE to 5676788 Toll Free No. - 1800 209 8800
This is a non-participating, group, unit-linked leave encashment insurance plan. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS
IRDAI clarifies to public that
- IRDAI or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums.
- IRDAI does not announce any bonus.
- Public receiving such phone calls are requested to lodge a police complaint along with details of phone call, number.
Trade Logo displayed above belongs to Kotak Mahindra Bank Limited and is used by Kotak Mahindra Life Insurance Company Ltd. (formerly known as Kotak Mahindra Life Insurance Company Ltd.) under license.
