26 July 2012
Dear expert, Life insurance premium of Rs. 56000/- paid for a period of 30/09/2011 to 31/03/2012 in May 2012. Whether the assessee can claim Rs. 56000/- as 80C in the return of AY 2012-13 or he has to claim it in AY 2013-14. Please advise me.
26 July 2012
He has to claim 80C deduction in A.Y.2013-14. Because 80C deductions allowable on cash basis i.e in the year of actual payment made not on the basis of accrual i.e in the year of actually payable.
Note: If any interest paid for the late payment of premium the interest paid amount doesn't allowable under section 80C.
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