Filing an income tax return is not only about salary slips, bank interest, and investment proofs. Insurance-related documents also matter, especially if you are claiming deductions, reporting maturity proceeds, receiving annuity income, or redeeming ULIPs.
Many taxpayers buy insurance for protection and then forget about the paperwork until filing season. This can create confusion at the last minute, particularly when the Annual Information Statement, Form 26AS, insurer records, and your ITR entries need to match.
Here are the key insurance documents you should keep ready while filing your ITR return.
Life Insurance Premium Receipts
If you are filing under the old tax regime, premiums paid for eligible life insurance policies can be claimed under Section 80C, within the overall limit of Rs 1.5 lakh. This limit includes other eligible investments and expenses as well, such as PPF, ELSS, EPF, tuition fees, and principal repayment of a home loan.
This deduction is generally not available under the new tax regime.
Keep premium receipts or an annual premium certificate from your insurer for every policy you want to claim. The document should clearly mention the policy number, name of the policyholder, name of the life insured, premium amount, and financial year of payment.
Section 80C deduction is available for life insurance premiums paid for yourself, your spouse, and your children, subject to applicable conditions. Life insurance premiums paid for parents do not qualify under Section 80C.
Health Insurance Premium Receipts
Health insurance premiums may qualify for deduction under Section 80D if you are filing under the old tax regime.
The deduction limit is up to Rs 25,000 for premiums paid for yourself, your spouse, and dependent children. You can claim an additional deduction for premiums paid for parents. The limit is Rs 25,000 if your parents are below 60 years of age and Rs 50,000 if either parent is a senior citizen.
Preventive health check-up expenses can also be claimed within the overall Section 80D limit, up to Rs 5,000.
Keep health insurance premium receipts, payment confirmations, bank or card statements, and preventive health check-up bills if you are claiming them. Health insurance premiums must generally be paid through non-cash modes to claim deduction. However, preventive health check-up expenses can be paid in cash and still be claimed within the allowed limit.
Life Insurance Maturity or Surrender Documents
If a life insurance policy matured or was surrendered during the financial year, do not ignore the payout while filing your ITR.
Some maturity proceeds are exempt under Section 10(10D), while others may be taxable depending on the policy type, issue date, premium amount, and policy conditions. For many traditional life insurance policies, tax exemption is linked to prescribed premium-to-sum-assured conditions under prevailing tax rules.
Keep the maturity certificate, surrender statement, settlement letter, and bank credit proof from the insurer. If tax was deducted at source, keep Form 16A as well.
Even if the payout is exempt, it is better to report it appropriately under exempt income while filing. Insurer-reported payout or TDS details may appear in your AIS or Form 26AS, and mismatches can create avoidable follow-ups later.
ULIP Redemption and Capital Gains Documents
ULIP redemptions need closer attention because the tax rules have changed for high-premium policies.
For ULIPs issued on or after 1 February 2021, if the aggregate annual premium across eligible ULIPs exceeds Rs 2.5 lakh, the maturity or redemption proceeds may lose Section 10(10D) exemption and become taxable as capital gains.
Tax treatment for taxable high-premium ULIPs is now broadly aligned with equity-oriented capital gains taxation under prevailing tax rules. The exact tax liability can depend on factors such as policy structure, holding period, and applicable provisions in force during the financial year.
To calculate the taxable gains correctly, keep your ULIP transaction statement ready. It should ideally show units allotted, units redeemed, NAV at allotment, NAV at redemption, date of purchase, date of redemption, and any partial withdrawals.
Also request a capital gains statement from your insurer if one is available. This is especially useful if you have made multiple premium payments, switches, or partial redemptions over different years.
Pension Plan and Annuity Income Statements
If you receive annuity income from an insurance-based pension plan, it is generally taxable in the year of receipt.
Because annuity income is usually paid monthly, quarterly, or annually, it can be easy to miss while filing. Keep the annual payout statement from the insurer or pension provider, bank credit records, and Form 16A if TDS has been deducted.
This income should be reported correctly in your ITR based on how it is reflected in your tax documents and AIS.
AIS and Form 26AS
Before filing your return, download both AIS and Form 26AS from the income tax portal.
AIS gives a wider view of financial information reported against your PAN, while Form 26AS helps you verify TDS and tax credit details. Insurance maturity payouts, TDS on taxable policy proceeds, and annuity-related deductions may appear in these records.
Compare these entries with your insurer documents before submitting your return. If there is a mismatch, resolve it before filing or report the correct figure with proper supporting documents.
Your Insurance Document Checklist
Before logging in to the ITR portal, keep these documents ready:
- Life insurance premium receipts or annual premium certificate
- Health insurance premium receipts and payment proof
- Preventive health check-up bills, if claimed
- Maturity, surrender, or settlement statement for life insurance payouts
- ULIP transaction and redemption statements
- Capital gains statement for ULIPs, if available
- Pension or annuity payout statement
- Form 16A wherever TDS has been deducted
- AIS and Form 26AS downloaded from the income tax portal
Conclusion
Insurance documents matter because insurance can affect both deductions and taxable income. A premium receipt may support a deduction, a maturity statement may explain exempt income, and a ULIP redemption statement may help calculate capital gains correctly.
Before filing, compare insurer-issued documents with AIS and Form 26AS. Use an income tax calculator to estimate your final liability, but rely on official insurer records while entering figures in your return.
A little preparation before filing can reduce mismatches, avoid missed deductions, and make your ITR easier to support if the tax department asks for clarification later.
