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80c life insurance-service tax portion

Jyothis (Article) (1127 Points)

16 February 2016

Can we claim life insurance premiun including service tax portion.

1.Can we claim all life insurance premium as 80C deduction/or is there any specific criteria for Insurance service provider-Say can we claim deduction of insurance premium of HDFC life.

Whether a insurance is eligible for 80c deduction is shown in Invoice/not

Eg:

Sum assured :4,06,091,Min death benefit is Rs.10 lacs & Annualised premium is Rs.1 lacs.

Premium paid was Rs.1,03,000 including Taxes.

Can an individual avail Rs.1,03,000 deduction for FY 15-16,premium is 10% more than sum assured but min death benefit is Rs.10 lacs,which to be taken for max insurance deduction computation.

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3 Replies

Sivaramakumar (GM-ACCOUNTS) (142 Points)
Replied 16 February 2016

Yes you can claim the premium paid , provided your insurance provider is approved by IRDA.

Premium paid is allowed .service tax is not eligible u/s 80C.

Capital sum assured needs to be taken for ceiling limits 10% for regular policies and 15% special policies for disabled.

Death benefits or minimum sum assured are not considered for ceiling limits.

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Jyothis (Article) (1127 Points)
Replied 16 February 2016

So in this case,10% of Rs.4,06,091 shall be taken to find the value of deduction u/s 80C.

As per policy agreement

Sum assured :4,06,091

Min death benefit is Rs.10 lacs

& Annualised premium is Rs.1 lacs.

Sivaramakumar (GM-ACCOUNTS) (142 Points)
Replied 16 February 2016

Since your maturity benefit, is 10 times your annual premium, and your annual premium is greater than 10% of the sum assured (Assuming to be a single premium plan) your claim u/s 80 C is eligible subject to the restriction of 10% as stated by you is correct.

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