13 June 2014
yes he shall be eligible provided that deduction claimed for the premium paid during the year should not exceed 10% of the sum assured if the policy was purchased on or after 1 April 2013 (for policies purchased before 1 April 2013, the percentage shall be 20%)
13 June 2014
Ads per section 40A(3), deduction is available on the payment basis. If u paid last installment in the month of April then it is allowed in the Previous year in which it is actually paid.
13 June 2014
LIC premium is deductible in the year in which it is paid. So if you paid in April 14 then you can claim for A.Y. 2015-16. but as Mr. Nikhil Kaushik told both preimum (one due in March-15) can't exceed 10% of sum assured otherwise only 10% of sum assured will be deductible u/s 80C
one more question if a salaried person having exempt allowance u/s 10 more than 5000/-
than which itr is applicable 1 or 2...?
and do you have any notification regarding that because i have filled itr -2 as i have exempt allowance u/s 10 ( conveyance allowance more than 5000/- )
some people says it is exempt income , not allowance but some says income includes allowance as their is no interpretation regarding that so plese clear
it is well and good if you provide me any circular , notification or some written evidence
13 June 2014
the problem is that the rule 12 uses the term " income not chargeable to tax", which would include section 10 too. refer prviso (III) to Rule 12(1)(a).
What it means is that practically rarely anyone will be able to fill ITR1.
now, coming interpretation, section 10 means receipts which though are in nature of income but are not taxable. Thus they are covered under "not chargeable to tax"
for any receipt to be excluded out of this term, it should not take form of any income...for eg capital receipts not covered under capital gains.
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