If Mr. X took loan from LIC against policy and didn't paid interest for last 3years and didn't claimed Such interest also in return then can he claim the interest paid on such loan in 4th year at the time of payment of such interest under section 43b of income tax act 1961
Section 43b covers interest ,
on any loan or borrowing from the any public financial institution, a state corporation, or a state industrial investment corporation and
Interest on any term loan from a scheduled bank in accordance with the terms and conditions of the agreement.
Sec. 4A of the Indian Companies Act, 1956 talks about
the Public Financial Institutions in India. Clause (1) lists the Public Financial Institutions in India, which include "The Life Insurance Corporation of India, established under Section 3 of the Life Insurance Corporation Act, 1956"
Therefore Interest on LIC Loan is covered u/s 43b of Income Tax Act,1961.
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