If we invest money in LIC, LIC gives 100 % refund in tax. Is it true? And if yes who will pay tax?

everybody will invest in LIC.
I know that I am in confusion . please explain me what it is?

You will have to calculate your taxable income first (that would be your annnual earnings less your investments/HRA/Medicals, etc.
If this amount is more than 1 lakh, you need to pay at 10% for the amount in excess of 1 lakh as tax. (similarly for more than 1.5 lakhs the tax is at 20% and for more than 2.5 lakhs is at 30%).
LIC is an investment and the amount invested in LIC for that year get exempted from tax. So you still would have to pay tax for the taxable income that you have.

LIC does not "refund" tax money - but you can claim tax exemption for the amount being invested in LIC. So if u pay a premium of rs.10,000 in one year, you can reduce that much amount on your income for calculating tax. So if you are already paying tax of 30,000 per year, you will save Rs.3000 because of your investment in LIC.

By the way - it need not be LIC. It can be any Life insurance, Postal Savings, Infrastructure bonds, Equity Linked Mutual funds (ELSS scheme) etc..

I believe LIC doesnt give tax refund. You may get tax deduction based on their schemes or products that you invest.

-:)

not refund tax, insurance product gives tax examption that is more invest in insurance

it is depending limit per income

LIC does not give refunds of taxes. The amount you pay as Insurance premium and the amounts you save under various approved savings schemes, up to a total of Rs.one lakh is deucted from the amount of your taxable income. Government is forgoing the tax amount, to enable you to save for your family's welfare.

Yes, you can deduct the premium 100% upto Rs.1,00,000 limit from your income.

r_ranjit and Cs r are correct.