Section 80c deduction on lic premium

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Zubair Ahmed (Querist)
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14 April 2014 I recently purchased two LIC policies. I paid the premium in cash. I want to know can my father claim deduction under section 80C in his income tax return on the premium I paid in cash. My father is a pensioner aged 71 & I am 35.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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15 April 2014 any one out of you two can claim, if have taxable income, to reduce the taxable income.
but once claimed cant be claimed by other

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Zubair Ahmed

Zubair Ahmed (Querist)
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15 April 2014 Thanks for your reply. Further I want to tell you that out of the two LIC policies first one is of Rs. 100000/- sum assured with Rs. 3461/- as yearly premium and second one is of Rs. 1000000/- sum assured with Rs. 4910/- as yearly premium. And if I add this two policies then total is Rs. 1100000/- sum assured with Rs. 8371/- as yearly premium.
As stated at https://www.licindia.in/tax_benefit.htm because policies are issued after 1st day of April 2012, premium paid shall be eligible for deduction only to the extent of 10% of the actual capital sum assured.
So 10% of the actual capital sum assured in this case is Rs. 110000/-.
Please tell me which amount is eligible for deduction from total income, is it 10% of the actual capital sum assured i.e. Rs. 110000/- or the yearly premium paid i.e. Rs. 8371/-. Or something else . . . . . . .

Rupesh Jain

Rupesh Jain (Expert)
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15 April 2014 u/s 80C eligible only paid amount
not the 10%
of sum assured.

Zubair Ahmed

Zubair Ahmed (Querist)
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16 April 2014 Then what about 10% of the actual capital sum assured ?

Rupesh Jain

Rupesh Jain (Expert)
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16 April 2014 it is limit of premium you can calim after depositing the premium.

before that everone deposit the premium of two years and claim in current year .

for that govt. make this limit.

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Zubair Ahmed

Zubair Ahmed (Querist)
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17 April 2014 Is it mandatory for my father to be the proposer of my insurance policy to claim deduction U/S 80C for him.

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