Insurance premium

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JYOTHILAKSHMI

JYOTHILAKSHMI (Querist)
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30 July 2014 If insurance premium is Rs.72000. Is it fully deductible u/s 80C

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 July 2014 yes within the overall limit of Rs 1.5 lakhs (from AY 2015-16) and Rs 1 lakhs (for AY 2014-15 and earlier years)

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 July 2014 Yes deductible u/s 80C provided the premium paid is not more than 10% or 20%, as the case may be, of the sum assured. Maximum amount eligible for LIC premium deduction u/s 80C is limited to 10% or 20% of the sum assured.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 July 2014 Deduction allowable from Income for payment of Life Insurance Premium (Sec. 80C).

(a) Life Insurance premia paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof under an insurance policy , ( other than a contract for a deferred annuity,) issued on or before the 31st day of March 2012 shall be eligible for deduction only to the extent of 20% of the actual capital sum assured.

(b) Life Insurance premia paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof , under an insurance policy , ( other than a contract for a deferred annuity,) issued on or after the 1st day of April 2012 shall be eligible for deduction only to the extent of 10% of the actual capital sum assured.

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