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LIC Premium

10 December 2010

Hi,

I want to know that what is the maximum limit of sum assured which is eligible to get the deduction of LIC premium u/s 80 C.

Whether it is 5% or 20% of Sum Assured of Policy Amount.

Thanks & Regards

Vishal

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3 Replies

Azim Khan ACA,CS,CMA*,LLB* (Proprietor) (1312 Points)
Replied 10 December 2010

its actual premium or

20% of sum assured

whichever is less....

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CA PARAS BAFNA (Practising CA ) (33428 Points)
Replied 10 December 2010

If you have purchased a policy of100000/- or say sum assured is100000/- then allowable LIC Premium is20000/- only. If premium paid is more than 20% of sum assured, this will not qualify for deduction.

Further at the time of maturity also the amount received will not be exempt U/s 10(10D) if excess premium is being paid. However in case of death , any sum received under a life insurance policy will qualify for exemption.