Hey as per 80 C, "Any amount paid to keep the policy alive" is allowed as deduction. So you are paying to get the lapsed policy to become alive. So allowed as deduction.
CA Madhukiran Reddy
(CHARTERED ACCOUNTANT)
(12714 Points)
Replied 16 November 2009
yes i think u can
| Originally posted by :jagdishkumar Ratanlal Solanki | ||
| " | Whether deduction is Allowed on late fee of LIc? | " |
Some one says it is allowed. Some people argue it is not allowed. Again as per sec 80 c " Any amount paid to keep the policy alive". They didn't say premium paid. So Lee fee is allowed as deduction as for as i concern.
Kiru.G
(Article Assitant)
(273 Points)
Replied 20 November 2009
yes u can claim,lapsed policy premium also......
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9058 Points)
Replied 20 November 2009
both will be allowed as deduction :
Any sums paid or deposited in the previous year by the assessee —
As Life Insurance premium to effect or keep in force insurance on life of (a) self, spouse and any child in case of individual and (b) any member, in case of HUF. Insurance premium should not exceed 20% of the actual capital sum assured.
CA Sourabh Jain
(Practicing Chartered Accountant)
(132 Points)
Replied 20 November 2009
thank you Mr. sunil ji for ur broad knowledge u had given here .........
Batul
(Article assistant)
(207 Points)
Replied 21 November 2009
yes premium under section 80C can be claimed even if it is for a lapsed policy
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