15 March 2013
one of the client is having lapsed life insurance policy for the last 5 years. He is doing business, now he earned the money and he comes under income tax for the FY2012-13. Can he makes the payment to life insurance totally for 5 years and get the deduction of whole amount of Rs.50,000/- (yearly Rs.10,000/- premium) in ITR for this financial year. Please give us your opinion.
15 March 2013
Yes he can. Deduction is available in respect of Financial Year in which payment is made. So if payment made in this year you will get deduction of the entire amount of Rs 50000/-
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