Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
09 March 2015Deduction will be allowed only for premiums upto a maximum of 10% of the sum assured for policy issued on or after April 1, 2012. Suppose if some one is paying yearly premium of Rs. 10000/- on SA Rs. 100000/-. In this case if someone paid two years premium together, is it allowable dedution?
J. K. Ratan
(Compliance Advisor)
(794 Points)
Replied 09 March 2015
Yes Mr. Tapse
you can cliam deduction for Rs. 20000.00 in the year in wich it paid. Deduction of LIC premium is allowed on Paid basis.
10% of sum assured always counted on Year basis. In your case 10,000.00 belongs to last year and remaining 10,000.00 to this year ( That is not exceed 10% of 1,00,000.00)
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