Life Insurance Premium u/s 80C

This query is : Resolved

CA Anil Jain (Querist)
Follow

10 November 2008 the premium paid for insurance of life for self , spouse and children
whether it is deductible on the basis of payment or in the year for which to it relates??

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

10 November 2008 It is only on payment.

CA Anil Jain

CA Anil Jain (Querist)
Follow

10 November 2008 i hav paid my LIP for the FY 2008-2009 on dated 27-march 2008, in whcih it will be deductible u/s 80C

Upgrade to CAclubindia Pro. Subscribe Now!

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

10 November 2008 The section is clear "if the payment is to keep in force an insurance.....It is enough if that condtion is satisfied.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
Follow

10 November 2008 on payment basis

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
Follow

10 November 2008 Section 80C is applicable only if the payment to LIC has been made out of the income earned during the year. It is allowed only on payment basis.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
Follow

11 November 2008 It is available on payment basis. Even in a case where cheque is issued at the year end but paid by bank in next financial year it will be deductible in the year in which it has been tendered.