30 January 2017
Mr. B has create a LIC on 01.05.2013 Premium paid from 01.05.2013 to 31.03.2014 Rs. 33,000/- Premium paid from 01.04.2014 to 31.03.2015 Rs. 36,000/- Premium paid from 01.04.2015 to 31.03.2016 Rs. 36,000/- Premium paid from 01.04.2016 to 31.03.2017 Rs. 36,000/-***
Now my question is:- 1) he is eligible for deduction U/c 80c (In FY 2016-17) with Rs. 36,000/-*** or only 10% of 36,000/-*10%= 3,600/-. 2) Although the actual amount is not income but when he will be get the actual amount and interest it will be taxable or not?
31 January 2017
Your 80CC is 36k for 2016-17. This will be deducted from your total income (from all sources) for this FY to arrive your net Taxable income . At Maturity , all LIC amount received is exepted if yearly premium was pad less or equal to 20% of assured sum. Read Rule 10 ( 10d) .
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