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80C regarding

14 October 2018

LIC premium for deduction
1.amount actually paid
2.or 10% of sum assured
whichever is lower
is this correct?
pls elaborate

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3 Replies

SAURABH SHARMA (PROPRIETOR) (61 Points)
Replied 14 October 2018

partially correct, actually 10% is calculated on capital sum assured, means in case of death how much guaranteed amount will be paid by insurance companies, this amount may also be higher than sum assured in some cases.

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Rakesh Joshi (CA Final) (1272 Points)
Replied 14 October 2018

Yes.. If the LIC Policy is taken after 1st April 2012 then the deduction should not exceed 10 % of the policy amount.

That means to say lower of 10% of policy amount or actual premium paid is allowed under 80C

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