LIC Premium Advance Payment Eligible for IT Deduction

Section 80C is related to investment on cash basis. Under the circumstances you will not get deductions as Advance payemnt to LIC but can avail for year during which you have paid it.

Actually why I asked such a question is recently I received an online LIC receipt from one of my friends.That statement reveals he made an advance payment to the LIC premium.That is he paid a premium which will become due in April 2010.He made the payment on 8/3/2010.I got some confusions.......

1,I don't know whether any one can make any advance payment to LIC,I mean if a premium which will due in the next Financial Year(2010-11) can we make the payment in this Financial Year itself(2009-10).Is it possible to make advance payment.....

Thanks

Binu.M.S

Actually why I asked such a question is recently I received an online LIC receipt from one of my friends.That statement reveals he made an advance payment to the LIC premium.That is he paid a premium which will become due in April 2010.He made the payment on 8/3/2010.I got some confusions.......

1,I don't know whether any one can make any advance payment to LIC,I mean if a premium which will due in the next Financial Year(2010-11) can we make the payment in this Financial Year itself(2009-10).Is it possible to make advance payment.....

Thanks

Binu.M.S

Dear Binu,

 

To what extent i have understood is that, LIC issue a certificate which show the chart of payments and receiepts. You can say it's provisional certificate of LIP but certainley you can not take benefit U/s. 80C if it is not paid during the year.

It is very clear that deduction is available u/s 80c on the payament basis. Thus, advance payament of LIP is eligible for claim under this section.

This type of case incurred when LIC premiun Due date come under March -april period. E.g. Premium due on 10th april 2015 but paid on 18th March 2015 as the same is acceptable by LIC as it is a grace period days. 

Now question arrived, if it is considered on payment basis then it should be claim in F.Y.2014-15.

Another case, the person not claimed it in F.Y.2014-15 but the payment made in F.Y.2014-15 for the premium due for F.Y.2015-16. In this case, Did he is entitled for 80C or not,

Best way to check in the lic portal and generate premium paid statement (which is used to claim the deduction under 80C) for both financial years. In my case, I paid the premium in advance in March 2019 and due date of premium was April 2019. When I generated the statement, I saw the payment is considered in Financial year 2019-20.