Believe in Yourself (article) (139 Points)
23 March 2013Plz reply..
If a person pays LIC premium for 5years in a single year(means paid the premium on advance basis), then how will he get the deduction u/s 80c.
Whether the whole amount paid for 5years is allowed in the year in which such premium is paid or he will get 1/5th of the amount every year.
Plz reply asap.
Thanks in advance.
CA. Dushyant ZALA
(PRACTISING C.A.)
(72 Points)
Replied 23 March 2013
No. Only for the year in which premium paid upto 20% of sum assured. which is reduced to 15% from A.Y.2013-14.
I advise you that please refer section 80 C of Income Tax Act,1961 and specifically subclause which relates to lic . It will clear all your doubts regarding dedction in respect of lic premium payment
CA Deepak Rathore
(EXPERT)
(281 Points)
Replied 24 March 2013
it is 20% for AY 2012-13
10% for AY 2013-14
and Proposed 15% for Ay 14-15
CAclubindia
