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
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
its actual premium or
20% of sum assured
whichever is less....
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.
Actual LIP paid or 20% of sum assured whichever is lower.
Regards,
Devendra P Kulkarni
CAclubindia
