Deduction u/s 80c and claiming refund of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2015 Dear all,

1. My Query is that, If asessee resident in india in employment under indian company from last 4 year and paid LIC Premium to NEPAL Insurance company in nepal currancy durring employment for claiming deduction under section 80C,Whether such deduction is allowed to asessee or not.

2. Whether asessee file ITR for FY 2011-12 and 2012-13 in current AY for claiming refund of TDS which is deducted by epmloyer.

Thanks & Regards
RITESH NAMDEO
CONTACT - 9806322259

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2015 Please any one give me answer immidiatly

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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20 July 2024 Let's address your queries regarding deduction under Section 80C and claiming refund of TDS:

### Query 1: Deduction under Section 80C for LIC Premium Paid to NEPAL Insurance Company

- **Residency Status:** As per the provisions of the Income Tax Act, an individual qualifies as a Resident in India if they fulfill any of the conditions specified under Section 6 of the Income Tax Act. One of the primary conditions is that the individual must be present in India for a specified period of time during the relevant financial year and for a total of 182 days or more during the preceding four years.

- **Deduction under Section 80C:** Section 80C allows for deduction of up to Rs. 1.5 lakh in aggregate for certain specified investments and expenses, including life insurance premium paid. However, for the premium to qualify for deduction under Section 80C, it must be paid to an insurer approved by the Insurance Regulatory and Development Authority of India (IRDAI) or to any other insurer notified by the Central Government.

- **Foreign Insurance Premium:** Payments made to a foreign insurance company, including NEPAL Insurance company, generally do not qualify for deduction under Section 80C unless specifically notified by the Central Government. The focus of Section 80C is to encourage investments and expenses within India's regulatory framework.

- **Taxability and Compliance:** If the premium is paid to a foreign insurer and is not eligible for deduction under Section 80C, the taxpayer cannot claim it as a deduction while computing their taxable income in India. Taxpayers are advised to verify with their tax advisors or consult the specific provisions of the Income Tax Act for any updates or exemptions applicable to foreign insurance premiums.

### Query 2: Filing ITR for FY 2011-12 and 2012-13 to Claim Refund of TDS

- **Filing ITR for Past Years:** If TDS (Tax Deducted at Source) has been deducted by your employer in FY 2011-12 and 2012-13 but you did not file your Income Tax Returns (ITR) for those years, you can still file belated returns or revised returns within the prescribed time limits.

- **Time Limit for Filing ITR:** Generally, a belated return for a particular financial year can be filed up to the end of the relevant assessment year. For example, for FY 2011-12 (assessment year 2012-13), the belated return could be filed by March 31, 2014, and for FY 2012-13 (assessment year 2013-14), the belated return could be filed by March 31, 2015. However, the specific time limits should be verified as they may vary.

- **Claiming Refund:** By filing the belated or revised returns for these years, you can claim a refund of any excess TDS deducted by your employer, subject to verification and assessment by the Income Tax Department. The refund process typically involves submission of your bank account details and validation of the TDS entries against your income details.

### Conclusion

- Deduction under Section 80C is generally not available for premiums paid to foreign insurers unless specifically allowed by the Central Government.
- You can file belated or revised returns for FY 2011-12 and 2012-13 to claim refund of excess TDS deducted by your employer, provided you do so within the applicable time limits.

For accurate advice tailored to your specific situation, it is advisable to consult with a qualified tax professional or chartered accountant who can provide guidance based on the latest tax laws and regulations.

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