Dear Friends,
If a person makes payment of LIC Premium which will due in the next Financial Year(ie,in 2010-2011)in 2009-2010 itself.That means he makes an advance payment of LIC premium.In such a case whether he can claim that LIC premium amount for claiming Income Tax deduction for the Financial Year 2009-10
Please share your ideas
Thanks In Advance
BINU.M.S
In My View, He can claim the 80C deduction for the advance payment. But he would not be eligible to claim the deduction in the Next financial Year. Neither the Party , i.e L.I.C will issue a Premium Paying Certificate. If L.I.C issues the Premium Paying Ceritificate then he can claim the 80C deduction in the financial Year 2009-10 itself.
I may be wrong. This is just a discussion and not a confirmation.
You are eligible for ded. u/s 80c because deduction is available on payment basis and hence in this case if u pay premium in advance u may get ded. in itself that previoys year.
Dear Friends
You are eligible for ded. u/s 80c because deduction is available on payment basis .
Hello,
This is unnecessary question. because,
you can't pay next year premium in the month or advance premium and not accepted by LIC
OK.
lic advance premium payment can be claimed u/s 80c in the year of payment.
Section 80C allows deduction as per cash basis i.e on payment basis not on accrual basis. so the deduction u/s 80C allows in the financial year when the payment made
OM SAI SRI SAI JAI JAI SAI
Combined reading of Aditya Sir's and Saravanan's replies is sufficient.....
hai...You are eligible to claim Advance payment of LIC as exemption u/s 80c but subject to maximum of Rs.1,00,000/-. But in the next year FY you can't claim.
CAclubindia
