14 October 2014
Hi friends, My query is one salaried employee paid LIC premium for 12 years & surrendered/ pre-matured the policy in 12th year itself before the end of the policy term of 15 years, can the assessee claim the premium paid for the 12th year as deduction U/s 80C.
According to 80C rules, tax savings on traditional life insurance plans will have to be reversed if you do not keep single premium policy in force for two years after the date of commencement of the policy OR regular premium policy premiums are not paid for two years.
So you can claim deduction for last years contributions.
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