04 December 2021
Sir, Question 1 - The taxpayer has issued the cheque for the payment of LIC Premium before 3st March 2021 but the Cheque was cleared in April 2021. So can the taxpayer claim the deduction of LIC Premium u/s 80C in the F.Y. 2020-21(A.Y. 2021-22) or Is he eligible for claiming the deduction in the F.Y. 2021-22 (A.Y. 2022-23)? In one of the Premium Receipt the date is 31/03/2021 and on the other Premium Receipt date is 26/03/2021. If the deduction is allowed in the F.Y. 2020-21 and not in the F.Y. 2021-22 Does it mean that we have to see only the date on premium receipt for deciding in which year the deduction will be allowed and their is no relation when the cheque is actually cleared?
Question 2 -Whether the LIC Premium paid in cash is allowed as dedcuction?
Question 3 - Please suggest some good books/courses on Income Tax for increasing Practical Knowledge
05 December 2021
In one of the premium receipt the date is 31/03/2021 and on the other premium receipt the date is 26/03/2021. If the premium is allowed as deduction in the F.Y. 2020-21 does it mean that the date mentioned on the premium receipt is the deciding factor to decide in which year the deduction will be allowed and it has nothing to do with in which year the cheque is cleared
Whether the LIC premium paid in cash is allowed as deduction?
05 December 2021
IN SUCH CASES WEIGHT IS GIVEN TO DATE OF RECEIPT BY LIC/RECEIVER AS SPECIFIED IN ITS RECEIPT. NOT OVER WHEN THE INSTRUMENT WAS PRESENTED TO BANK.
05 December 2021
YES, PREMIUM PAID BE CASH IS ALLOWED U/S. 80C OF IT ACT. BUT AT SOME COLLECTION COUTERS IT IS NOT ACCEPTED MORE THAN Rs. 50,000/- OTHERWISE ALSO PAN IS MUST IF THE AMOUNT EXCEEDS 50K.
05 December 2021
Thanku Sir it is really helpful. Sir I request you to please suggest some books and courses on Income Tax and GST for increasing the practical Knowledge. I would like to know more about how to approach career in Tax.
06 December 2021
Practically it is difficult to refer any particular book/s, but would advise to follow ICAI material and the basic knowledge provided under IT & GST websites. Some FAQ & tutorials by the department are most useful. In addition some material/articles & case-laws by Taxmann, ITAT org etc can update you with recent rulings. Practice/experience will only make you more perfect and get you more & more confidence. Would advise to choose any one field to expertise.
06 December 2021
Though the question arises till you are studying... In practice let me give you dark side of the reality. Earlier professionals had been referring 'Ready Reckoners' & 'Handbooks' for current updates on any topic/subject. But now these has been replaced with Ready to use 'Software'. Just feed the data & get final solution. No need of any such knowledge, or even its thirst. Most of the time whatever knowledge he/she had, it gets rusted, creating lack of confidence. Well..... Good luck.
11 December 2021
Dear Sir, I completely agree with you regarding the Ready to use 'Software' and much in support of the thing that software does makes us dependent upon them thereby consequently and gradually making us lose our confidence in ourselves. Thanks
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