Lic exemption

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This query is : Resolved

Srimannarayana (Querist)

29 December 2015 1) One of my employee paid LIC Premium 8,998/- Yearly Basis with sum assured 2,00,000/- date of commence is 09/12/2014 and paid installment in 12/2015 and the next due date is 12/2016 now my doubt is for the FY 2015-16 how much we will get deduction 8,998/- or 8,998*2 because here two financial years are appearing?

Deduction limit: Deduction will be allowed only for premiums upto a maximum of 10% of the sum assured for policy issued on or after April 1, 2012. In case of policy issued before March 31, 2012, deduction will be allowed only for premiums upto a maximum of 20% of the sum assured.
2) According to the above statement S.A=2,00,000 in 10%=20,000/- if we get 8,998 as deduction for the FY 2015-16 we will get 8,998*2=17996 for two years right sir? please clarify my doubt

Amol S Joglekar

Amol S Joglekar (Expert)

29 December 2015 There are many more things appearing in the LIC premium paid receipts. Crux is how amount he paid.
The deduction is available on payment basis subject to the 10% limit.

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