Clasue for lic

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Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2013 what is the clause for LIc to consider under 80c section. Is there any special clause.please tell me

Hemant Kumar

Hemant Kumar (Expert)
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13 March 2013 Eligible Deductions u/s. 80C.
Contribution to notified annuity plan of LIC(e.g. Jeeavan Dhara). If in respect of such contribution. Deduction u/s. 80CCC has been availed.
Section 80CCC: Payment of premia for annuity plan of LIC deduction is available upto a maximum if Rs. 100000/-

Hemant Kumar

Hemant Kumar (Expert)
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Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2013 Is there any clause of (If the Policy is Issued Before April 1, 2012 then 20% of Sum
Assued will be allowed as deduction )

(If the Policy is Issued After April 1, 2012 then 10% of the Sum
Assued will be allowed as deduction )

please explain this clause

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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19 July 2024 Under Section 80C of the Income Tax Act, 1961, premiums paid towards life insurance policies are eligible for deduction, subject to certain conditions. Here are the relevant details regarding deductions for life insurance premiums under Section 80C:

1. **Deduction Limit**: The maximum deduction allowed under Section 80C for life insurance premiums, including premiums paid for LIC policies, is Rs. 1,50,000 for the financial year 2023-24 (assessment year 2024-25).

2. **Policy Issued Before April 1, 2012**:
- For policies issued before April 1, 2012, premiums paid up to 20% of the sum assured are eligible for deduction under Section 80C.
- This means if the premium paid in any year does not exceed 20% of the sum assured, the entire premium qualifies for deduction under Section 80C.

3. **Policy Issued After April 1, 2012**:
- For policies issued after April 1, 2012, premiums paid up to 10% of the sum assured are eligible for deduction under Section 80C.
- Similar to the earlier provision, if the premium paid in any year does not exceed 10% of the sum assured, the entire premium qualifies for deduction under Section 80C.

4. **Other Conditions**:
- The policy must be in the name of the individual taxpayer, spouse, or any child of the individual.
- The policy should be issued by the Life Insurance Corporation of India (LIC) or any other insurer approved by the Insurance Regulatory and Development Authority of India (IRDAI).

5. **Effective Date of Deduction**: The deduction is available for premiums paid during the financial year (April 1 to March 31) in which they are paid.

### Conclusion:
Yes, there are specific clauses based on whether the life insurance policy was issued before or after April 1, 2012, determining the percentage of the sum assured eligible for deduction under Section 80C. It's important to verify the specific terms of your policy and consult with a tax advisor for precise calculations and compliance with tax regulations.