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U/S 80C - Pl Clarify

BABU.D (.) (408 Points)

11 June 2008

Dear freinds

U/S 80C: For Qualifing Amount purpose:

Life insurance premium wheather eligible for otherthan child ,spouce,dependent. like.. independent / married / Major persons. pl clarify it

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7 Replies

CA Amit Prakash Sharma (Chartered Accountant) (92 Points)
Replied 11 June 2008

Life insurance premium paid out of taxable income is eligible for deduction u/s 80C but this will be subject to 20% of sum assured.

Further this deduction can be avail for the life insurance premium paid on the life of spouse, children only.

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bhavna (CA FINAL STUDENT) (75 Points)
Replied 11 June 2008

Life insurance premium paid out of taxable income is eligible for deduction u/s 80C but this will be subject to 20% of sum assured. Further this deduction can be avail for the life insurance premium paid on the life of spouse, adult children, married doughter

Pushkraj Sathe (Chartered Accountant) (203 Points)
Replied 11 June 2008

Here the child will include an illegitimate child or an adopted child also.

Azmathullah Khan (Accounts Manager) (1386 Points)
Replied 11 June 2008

Ms. Bhavna & Mr Amit is right, but the limit is Rs. 1,00,000/- not 20%. it should be either LIC, NSC, Mutual Fund, etc. the total exemption is Rs.1 Lac.

Please

Azmathullah Khan (Accounts Manager) (1386 Points)
Replied 11 June 2008

Ms. Bhavna & Mr Amit is right, but the limit is Rs. 1,00,000/- not 20%. it should be either LIC, NSC, Mutual Fund, etc. the total exemption is Rs.1 Lac.

Please refer Form 16 attached.

Attached File : 21 form 16 16a.xls downloaded: 229 times