24 March 2011
I had purchased a LIC policy. Now the policy certificate came dated 31.03.10 (09-10) but the bank debited the amount on the 04.04.10 (10-11). I took the decision of taking the deductible amount in FY 10-11 thinking if asked of debit date by the assessing officer, I would have to show the debit date of the amount. Now after discussion with a couple of colleagues I was told I should have taken the amount a deductible U/s 80C in the FY 09-10. Should the amount in question be considered deductible in the FY 09-10 or can I take cognizance of the amount in the FY 10-11.
24 March 2011
If you have paid the premium amount by cheque on or before 31/3/2010, and the cheque date is also with in that time,though bank entry date is 4/4/2010, claim can be availed in financial year 2009-10 otherwise your observation stands correct.
24 March 2011
Thank you sir. Since I have not availed the benefit of the said policy amount in my returns of Fy 09-10. Could I take the benefit in the current year of FY 2010-11. Would this be disallowed by the assessing officer.
25 March 2011
Assessing officer will see the date in LIC Premium Receipt and since it bears the date 31/03/2010 it will be disallowed. But in my opinion you should claim the amount as deduction as on the grounds of natural justice you shall be allowed the deduction and the assessing officer may allow the deduction. Further if the file is not selected for scrutiny you will obviously get the benefit. So please go ahead and claim the deduction.
25 March 2011
yes agreed, both experts has given exact reply, next time you should have to pay cheque before march end so that your given cheque and payment debit month will be the same.by this your deduction of paid & debited confusion will be solved.
25 March 2011
In my opinion the deduction can be claimed only in FY 2009-10 and there is no point of natural justice. The claim will certainly disallowed.
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