About deduction in 80c

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neha (Querist)
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21 February 2013 sir,
if any lic premium paid in respect of previous year in current year with intrst then whether both will be allow for deduction or not in current year income

harleen batra

harleen batra (Expert)
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21 February 2013 Premiun paid in respect of current year and previous year both will be allowed u/s 80C in the A/Y following the previous year in which payment is made. But interest component for late payment of premium will not be allowed.

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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21 February 2013 LIC is allowed on payment basis.
so premium will be allowed if paid in current year.
but interest will not be allowed
but one thing must to see- LIC premium is allowed till 20% on insured value. so check whether previous year and current year premium amount don't exceed this.

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harleen batra

harleen batra (Expert)
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22 February 2013 Yes, As per sec 80C(3) limit is 20% on insured value.

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