I would like to know that whether the deduction u/s 80C of the Income Tax Act in respect of Life Insurance Premium is allowable inclusive of Service Tax OR exclusive of Service Tax ? For example, say, Mr. X pays the premium of Rs. 10,000 and L.I.C. charges 10.3% Service Tax on Rs. 10,000 i.e., Rs. 1030. Thus, Mr. X pays Rs. (10,000 + 1,030) = Rs. 11,030 in total. Now, the question is whether Mr. X will get the deduction of Rs. 10,000 only OR full deduction of Rs. 11,030 which includes Service Tax, u/s 80C of the Income Tax Act ?
17 December 2010
Sir, Please be specific. Which amount Rs. 10,000 OR Rs. 11,030 ? Also provide some reasons/explanations for the answer. Please don't give one-liners.
17 December 2010
Sir, Please be specific. Which amount Rs. 10,000 OR Rs. 11,030 ? Also provide some reasons/explanations for the answer. Please don't give one-liners.
20 December 2010
In section no where told inclusive of service tax or exclusive, so we need to take inclusive, so Rs.11030 will be allowed as deduction
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