Deduction U/s 80C
This query is : Resolved
Vinay Gupta
(Querist)
16 December 2010
Dear Sir/Madam,
I would like to know that whether the deduction u/s 80C of the Income Tax Act in respect of Life Insurance Premium is allowable inclusive of Service Tax OR exclusive of Service Tax ?
For example, say, Mr. X pays the premium of Rs. 10,000 and L.I.C. charges 10.3% Service Tax on Rs. 10,000 i.e., Rs. 1030. Thus, Mr. X pays Rs. (10,000 + 1,030) = Rs. 11,030 in total. Now, the question is whether Mr. X will get the deduction of Rs. 10,000 only OR full deduction of Rs. 11,030 which includes Service Tax, u/s 80C of the Income Tax Act ?
Please help.
Thank you!
Regards,
Vinay Kumar Gupta.
I would like to know that whether the deduction u/s 80C of the Income Tax Act in respect of Life Insurance Premium is allowable inclusive of Service Tax OR exclusive of Service Tax ?
For example, say, Mr. X pays the premium of Rs. 10,000 and L.I.C. charges 10.3% Service Tax on Rs. 10,000 i.e., Rs. 1030. Thus, Mr. X pays Rs. (10,000 + 1,030) = Rs. 11,030 in total. Now, the question is whether Mr. X will get the deduction of Rs. 10,000 only OR full deduction of Rs. 11,030 which includes Service Tax, u/s 80C of the Income Tax Act ?
Please help.
Thank you!
Regards,
Vinay Kumar Gupta.
CA Ayush Agarwal
(Expert)
16 December 2010
The Amount You paid will be Allow u/s 80C.
CMA Ramesh Krishnan
(Expert)
16 December 2010
yes. deduction available
Vinay Gupta
(Querist)
17 December 2010
Sir, Please be specific. Which amount Rs. 10,000 OR Rs. 11,030 ?
Also provide some reasons/explanations for the answer.
Please don't give one-liners.
Also provide some reasons/explanations for the answer.
Please don't give one-liners.
Vinay Gupta
(Querist)
17 December 2010
Sir, Please be specific. Which amount Rs. 10,000 OR Rs. 11,030 ?
Also provide some reasons/explanations for the answer.
Please don't give one-liners.
Also provide some reasons/explanations for the answer.
Please don't give one-liners.
CA Ayush Agarwal
(Expert)
18 December 2010
11030 Will Be Allowed
CMA Ramesh Krishnan
(Expert)
20 December 2010
In section no where told inclusive of service tax or exclusive, so we need to take inclusive, so Rs.11030 will be allowed as deduction
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Gst registered proprietorship firm
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- TDS on Fixed Assets purchased
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Capitalgain tax purposes for valuation report compulsory
- SALARY CAN BE CAPITALIZE
- Non filing of I T Returns
- TAX AUDIT ON PROFESSIONAL INCOME
- Under marginal scheme
- Import of Software Service.
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
