Sec 80c

This query is : Resolved

Abhishek (Querist)
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07 December 2013 I got a life insurance amount policy being 200000 rs premium paid is around 1000 pm how much deduction can be claimed

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 December 2013 Entire amount of premium i.e., Rs 12000/- p.a. can be claimed as deduction in the year in which the premium is paid. Deduction is available on payment basis.

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Abhishek

Abhishek (Querist)
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08 December 2013 as per new rules we cant take 10% of the sum assured as deduction???

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 December 2013 Yes. Under Section 80C, you got an exemption for insurance premium paid, upto an overall limit of 100,000 per year. Earlier, insurance premium was only exempt if: the premium was less than 20% of “sum assured”.

New change: the premium needs to be less than 10% of sum assured for an 80C deduction.

Your Sum Assured is Rs 2 Lacs and 10% will be Rs 20000/- whereas your premium is Rs 12000/-. Hence entire premium amount can be claimed as deduction.

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