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80C deduction in respect of Life insurance premium

kumar (CA-Final) (113 Points)

22 August 2018

where the insurance premium paid in respect of Life insurance exceeds
10% of Sum Assured, the premium upto 10% is allowable as deduction.

Is it true ?

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2 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 22 August 2018

Yes Below 10% premium allowed as deduction

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CA P V N Varma (CA ) (609 Points)
Replied 22 August 2018

Issued from 01.04.2012 – premium paid not in excess of 10% of Capital Sum Assured (as amended by Finance Act 2012).

Issued from 01.04.2003 and on or before 31.03.2012 – premium paid not in excess of 20% of Capital Sum Assured

person with disability or a person with severe disability as referred to in section 80U, or (b) suffering from disease or ailment as specified in the rules made under section 80DDB,

Issued from 01.04.2013 – premium paid not in excess of 15% of Capital Sum Assured ( Inserted by the Finance Act, 2013, w.e.f. 1-4-2014).

Therefore , it is clear from section 80C (3) that whatever insurance premium is paid for any insurance policy( other than deferred annuity) or ULIP , the maximum allowable is fixed at 10% or 15% of the sum assured.