Deduction of insurance premium paid for securing loan
This query is : Resolved
Ravi Rajani
(Querist)
03 March 2017
A client has taken agri loan from Axis Bank and has taken insurance from MAX LIFE INSURANCE. Now if the client dies, becomes insolvent during loan period MAX LIFE INSURANCE will liable for remaining loan. For that client has paid a premium of Rs 11210. Is the amount deductible under IT Act?
CA DHAVAL MISTRY
(Expert)
05 March 2017
Life Insurance is having EEE status it means premium paid is exempt, any subsequent earning on it is exempt and maturity amount is exempt. So, proceed against death of insurer whether received by family members or by any other agency as security for loans is exempt from tax
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