As per the new changes in the income tax "It is provided in section 10 (10D) that any sum received under a life insurance policy including bonus will not be exempt from total income if the premium payable in any of the years during the term of the policy exceeds twenty percent of actual capital sum assured. It is now proposed that from the assessment year 2013-14, exemption under section 10 (10D) will be available only those life insurance policies in which premium payable will not exceeds ten percent of capital sum assured in any of the year during the term of the policy.
Similar amendments are proposed in sub section (3) of section 80C that only those life insurance premium are eligible for deduction under section 80C which does not exceeds ten percent of capital sum assured."
For example.... (1) I have one LIC policy of which sum assured is 5 Lakhs and we have paid premium more than 20 % of sum assured whcih is 1.10 Lkahs. Can i take the exemption of full premium which I have paid during the year 1.10 Lakhs.
OR If I have paid total premium 1 Lakhs during the FY 2012-13 for multiple policies so do we need to take only the 10% of sum assured in exemption not the total amount of Rs 1 Lakh.
Kindly request you to let me know about this amendment.
CAclubindia
