N satya krishna (Tax Practitioner) (57 Points)
18 August 2018Can we deduct previously paid insurance premium amounts from the maturity amount recieved, inorder to decrease taxable income????
The plan is HDFC SL Sampoorn Samridhi.
Those are already taken as deductions in previous 5 Years u/s 80C
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(175687 Points)
Replied 18 August 2018
No.
(for policies where sec. 10(10D) of IT act, is not applicable)
Vineet
(MBA)
(77 Points)
Replied 18 August 2018
N satya krishna
(Tax Practitioner)
(57 Points)
Replied 18 August 2018
yes they deducted TDS u/s 194 DA @ 1%
N satya krishna
(Tax Practitioner)
(57 Points)
Replied 18 August 2018
Thanq sir. That amount is not satisfying sec 10(10D) conditions but the insurance company advised my client to deduct previously paid insurance premiums from that maturity amount.
note: Insurance company just advised & they clearly mentioned not to follow that blindly without tax consultant's opinion
Vineet
(MBA)
(77 Points)
Replied 19 August 2018
N satya krishna
(Tax Practitioner)
(57 Points)
Replied 19 August 2018
thanQ guys. Can you please mention the section on which basis we can deduct those paid premiums ? Because I want the source for much clarity to face further notices from department if any.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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