14 April 2014
I recently purchased two LIC policies. I paid the premium in cash. I want to know can my father claim deduction under section 80C in his income tax return on the premium I paid in cash. My father is a pensioner aged 71 & I am 35.
15 April 2014
Thanks for your reply. Further I want to tell you that out of the two LIC policies first one is of Rs. 100000/- sum assured with Rs. 3461/- as yearly premium and second one is of Rs. 1000000/- sum assured with Rs. 4910/- as yearly premium. And if I add this two policies then total is Rs. 1100000/- sum assured with Rs. 8371/- as yearly premium. As stated at http://www.licindia.in/tax_benefit.htm because policies are issued after 1st day of April 2012, premium paid shall be eligible for deduction only to the extent of 10% of the actual capital sum assured. So 10% of the actual capital sum assured in this case is Rs. 110000/-. Please tell me which amount is eligible for deduction from total income, is it 10% of the actual capital sum assured i.e. Rs. 110000/- or the yearly premium paid i.e. Rs. 8371/-. Or something else . . . . . . .
CAclubindia
