LIC PREMIUM
This query is : Resolved
25 February 2017
if LIC premium paid by me can I claim rebate under Sec 80C
26 February 2017
Yes you can claim deduction u/s 80C.
26 February 2017
Sir Which type of Fixed deposit help in avail income tax rebate
02 August 2024
### **Claiming Rebate under Section 80C for LIC Premium**
**LIC Premium and Section 80C:**
1. **Eligibility**:
- You can claim a deduction under Section 80C of the Income Tax Act for the premiums paid on life insurance policies.
- This applies if you are paying premiums for policies in your name, your spouse’s name, or your children’s names.
- The policy must be a life insurance policy, which includes traditional LIC policies, term plans, and endowment policies.
2. **Conditions**:
- The deduction is available for premiums paid on policies where the insured person is the policyholder.
- The total deduction available under Section 80C is capped at ₹1.5 lakh per financial year. This limit includes all eligible investments and expenditures under Section 80C, such as LIC premiums, PPF contributions, ELSS investments, and others.
### **Types of Fixed Deposits for Tax Benefits**
**Fixed Deposits (FDs) and Section 80C:**
1. **Tax-Saving Fixed Deposits**:
- **Eligibility**: Fixed deposits with a tenure of 5 years or more, offered by banks and post offices, are eligible for tax deductions under Section 80C.
- **Limit**: The maximum amount eligible for deduction is ₹1.5 lakh per financial year, which is part of the overall limit of Section 80C.
- **Interest**: The interest earned on these tax-saving fixed deposits is taxable under the head “Income from Other Sources.”
2. **Non-Tax-Saving Fixed Deposits**:
- **No Tax Benefits**: Fixed deposits with a tenure of less than 5 years do not qualify for deductions under Section 80C.
- **Taxation of Interest**: Interest earned on these deposits is taxable and must be declared in your income tax return.
### **Summary**
- **For LIC Premiums**:
- Claim a deduction under Section 80C for premiums paid on life insurance policies.
- Ensure the policy is in your name or the name of your spouse/children.
- **For Fixed Deposits**:
- Tax-saving fixed deposits with a 5-year tenure are eligible for deductions under Section 80C.
- Non-tax-saving fixed deposits do not offer tax benefits under Section 80C, but the interest earned is taxable.
### **Additional Tips**
- **Documentation**: Keep all receipts and statements for premiums paid and fixed deposits as evidence for claiming deductions.
- **Filing**: Ensure that the total claim under Section 80C, including LIC premiums and tax-saving FDs, does not exceed ₹1.5 lakh.
For specific advice and to ensure compliance with all tax regulations, consulting a tax professional is recommended.
**LIC Premium and Section 80C:**
1. **Eligibility**:
- You can claim a deduction under Section 80C of the Income Tax Act for the premiums paid on life insurance policies.
- This applies if you are paying premiums for policies in your name, your spouse’s name, or your children’s names.
- The policy must be a life insurance policy, which includes traditional LIC policies, term plans, and endowment policies.
2. **Conditions**:
- The deduction is available for premiums paid on policies where the insured person is the policyholder.
- The total deduction available under Section 80C is capped at ₹1.5 lakh per financial year. This limit includes all eligible investments and expenditures under Section 80C, such as LIC premiums, PPF contributions, ELSS investments, and others.
### **Types of Fixed Deposits for Tax Benefits**
**Fixed Deposits (FDs) and Section 80C:**
1. **Tax-Saving Fixed Deposits**:
- **Eligibility**: Fixed deposits with a tenure of 5 years or more, offered by banks and post offices, are eligible for tax deductions under Section 80C.
- **Limit**: The maximum amount eligible for deduction is ₹1.5 lakh per financial year, which is part of the overall limit of Section 80C.
- **Interest**: The interest earned on these tax-saving fixed deposits is taxable under the head “Income from Other Sources.”
2. **Non-Tax-Saving Fixed Deposits**:
- **No Tax Benefits**: Fixed deposits with a tenure of less than 5 years do not qualify for deductions under Section 80C.
- **Taxation of Interest**: Interest earned on these deposits is taxable and must be declared in your income tax return.
### **Summary**
- **For LIC Premiums**:
- Claim a deduction under Section 80C for premiums paid on life insurance policies.
- Ensure the policy is in your name or the name of your spouse/children.
- **For Fixed Deposits**:
- Tax-saving fixed deposits with a 5-year tenure are eligible for deductions under Section 80C.
- Non-tax-saving fixed deposits do not offer tax benefits under Section 80C, but the interest earned is taxable.
### **Additional Tips**
- **Documentation**: Keep all receipts and statements for premiums paid and fixed deposits as evidence for claiming deductions.
- **Filing**: Ensure that the total claim under Section 80C, including LIC premiums and tax-saving FDs, does not exceed ₹1.5 lakh.
For specific advice and to ensure compliance with all tax regulations, consulting a tax professional is recommended.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Payment of bonus act - notice pay recovery
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
