Tax-Advance Premium Payment, Partial Withdrawal & Surrender

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2010 i. Whether premium paid in advance (e.g. Rs.40000/- pertaining to FY 2010-11 paid in FY 2009-10)can be claimed in FY 2010-11?

ii. Tax implications of partial withdrawal in 3rd and 4th year of policy?

iii. Tax implications of policy surrendered in 3rd or 4th year of policy?

iv. Whether top-up premium paid apart from the regular premium is eligible for tax provisions u/s 80?

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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22 March 2010 LIC premium paid(past or future) up to 20% of sum assured subject to max of 1.00 lac is deductible U/S 80 C, it includes top up payment also.