c.bakshi (practising company secretary) (3221 Points)
23 February 2018Respected professionals,
greetings of the day
I have paid 10250 on premium of lic
on which 250 rs is GST. now, I have query related to eligibility of amount of premium for getting deduction under section 80 C. whether 10250 is allowed as deduction or 10000
sujith kumar dasa
(banglore)
(1496 Points)
Replied 23 February 2018
Sumit Sarswat
(Student)
(3154 Points)
Replied 23 February 2018
CA Dheeraj S
(Practicing CA)
(427 Points)
Replied 23 February 2018
You can take deduction of entire amount of premium paid. i.e (Premium plus applicable taxes).
c.bakshi
(practising company secretary)
(3221 Points)
Replied 24 February 2018
CA Dheeraj S
(Practicing CA)
(427 Points)
Replied 24 February 2018
The current tax rules states that "any amount paid to keep in force a life insurance policy qualifies for a tax deduction under section 80C." It is a common perception that Premium Paid all Life Insurance Policies are qualifies for deduction under section 80C of Income Tax Act, 1961.
As per Section 80C(2) of the Income Tax Act, 1961 any amount paid to an insurer to buy or to keep a life insurance policy in force can be claimed as a deduction from gross total income by the policy holder. This implies that premium paid for a life insurance policy can be deducted from gross total income before arriving at taxable income subject to certain condition.
Section 80C(2) also clarifies that in order to claim the deduction from gross total income for a particular year the gross amount of premium must be paid or deposited in that particular financial year itself.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 24 February 2018
Manish Kothari
(Partner)
(24 Points)
Replied 24 February 2018
I am running partnership firm and Can we claim back GST paid on personal policies?
Manish Kothari
(Partner)
(24 Points)
Replied 24 February 2018
Ok. Sir, thanks for your prompt reply.....
Is it possible in proprietor firm or GST on policies is not eligible for ITC?
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 24 February 2018
c.bakshi
(practising company secretary)
(3221 Points)
Replied 27 February 2018
Thanks you for clarifying in a technical manner.
My further query is when a person download a premium certificate on the website of LIC, the premium amount exclude the value of GST paid on the premium. If the person is a salaried employee and he wants to submit the documents of investment. how he can get deduction on the full amount ?
CA Rizu
(1)
(26 Points)
Replied 21 June 2018
CA Shivam Arora
(Chartered Accountant)
(2414 Points)
Replied 21 June 2018
No compensation received whether before or after death will not attract GST.
CA Rizu
(1)
(26 Points)
Replied 21 June 2018
CAclubindia
