Deduction u/s 80c on payment basis ?
This query is : Resolved
13 June 2014
dear sir,
if a person paying lic premium on half yearly basis let's assume
on 15 june 2013 and 15 march 2014 of rs. 10,000/- ( for his and his wife )
now suppose in f.y 2013-14 he also has some other investment u/s 80c and suppose he crossed the limit of rs. 1,00,000/-
for tax saving purpose he did not paid the lic premium of march' 2014 and he paid in the first week of april with interest
now can he eligible for 80c deduction ..? of rs. 10,000 each of last year's payment.
thanks
if a person paying lic premium on half yearly basis let's assume
on 15 june 2013 and 15 march 2014 of rs. 10,000/- ( for his and his wife )
now suppose in f.y 2013-14 he also has some other investment u/s 80c and suppose he crossed the limit of rs. 1,00,000/-
for tax saving purpose he did not paid the lic premium of march' 2014 and he paid in the first week of april with interest
now can he eligible for 80c deduction ..? of rs. 10,000 each of last year's payment.
thanks
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%)
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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
dear Nishchit,
does 40A(3) applies to section 80c payments? or is it restricted to business expenditure?
further please note that 40A(3) is for payments in excess of Rs 20000 in cash.
does 40A(3) applies to section 80c payments? or is it restricted to business expenditure?
further please note that 40A(3) is for payments in excess of Rs 20000 in cash.
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
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
13 June 2014
dear nikhil sir,
on or after 1.4.2013 or 1.4.2012
please correct me if i am wrong
http://www.licindia.in/tax_benefit.htm
on or after 1.4.2013 or 1.4.2012
please correct me if i am wrong
http://www.licindia.in/tax_benefit.htm
13 June 2014
its 1 april 2012. my typo mistake...please accept my apologies.
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13 June 2014
don't say sorry sir it happens
and thanks for very quick reply
and thanks for very quick reply
13 June 2014
you are welcome Uday...
13 June 2014
Dear Nikhil sir,
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
awaiting for your reply...
thanks in advance
Dear Nikhil sir,
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
awaiting for your reply...
thanks in advance
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.
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.
13 June 2014
sir,
it means itr 1 is need to be file instead of itr 2 ..?
it means itr 1 is need to be file instead of itr 2 ..?
13 June 2014
more often than not , yes....actually if I look back...many of clients also were required to file ITR2 instead of ITR1!!
13 June 2014
thank you once again sir
thanks
thanks
13 June 2014
:) take care Uday...have fun.....
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