As per the Income Tax Act, it is mandatory to link your LIC (Life Insurance Corporation) policy with your PAN (Permanent Account Number). The main benefit of linking your LIC policy with PAN is that it helps in easy identification of the policyholder’s income tax records. Let’s learn how to link PAN to LIC Policy online in this post.
LIC PAN Link – How to?
To know how to link PAN with LIC policy, follow these steps:
- Visit the LIC website and go to LIC PAN linking webpage at https://licindia.in/Home/Online-PAN-Registration
- Read the guidelines and click on ‘Proceed’
- An online LIC PAN Link form will open
- Enter your DOB, gender, PAN, Full name as on PAN card, mobile number and LIC policy number
- Give declaration and type in Captcha
- Click on ‘Get OTP’ and process with steps as they appear on your device-screen
Once the PAN card is linked, you will receive a confirmation message from LIC.
It is important to note that if you do not link your LIC policy with PAN, your policy may be subject to TDS at a higher rate, and you may face difficulties in claiming tax benefits under section 80C. Therefore, it is advisable to link your LIC policy with PAN as soon as possible.
Benefits of Linking PAN to LIC Policy
Here are some of the benefits of linking your LIC policy with PAN:
- Easy identification of income tax records: Linking your LIC policy with PAN helps in easy identification of your income tax records. It helps the Income Tax Department to identify your income and tax payment history.
- Helps in claiming tax benefits: If you have taken a LIC policy, you can claim tax benefits under section 80C of the Income Tax Act. By linking your LIC policy with PAN, you can easily claim these tax benefits.
- Avoidance of TDS (Tax Deduction at Source): In case you have not linked your LIC policy with PAN, the TDS rate on the maturity amount of your policy may be as high as 20%. By linking your policy with PAN, you can avoid such a high TDS rate.
Read more about topics related to PAN:
LIC PAN Link : FAQs
It is necessary to link your PAN with your LIC policy to comply with the Income Tax regulations. Non-linking of PAN with your policy may result in higher tax deduction at source (TDS).
You can link your PAN with your LIC policy by visiting the LIC portal or by visiting a branch office. You will need to submit a self-attested copy of your PAN card and policy documents. Check online method here.
Yes, it is mandatory to have a PAN card to link it with your LIC policy. If you do not have a PAN card, you will need to apply for one before linking it with your policy.
Yes, you will receive a confirmation message once your PAN is linked with your LIC policy. You can also check the status of the linking by logging in to your LIC account.
No, once you link your PAN with your LIC policy, you do not need to link it again unless there is any change in your policy details or your PAN number.