TDS Deduction on LIC

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2011 Dear Sir,
I created a LIC in Endownment single premium plan.in which policy has been paid Rs. 30000/-as a single premim for 5 years.
Policy S.A. - 40000/-
please suggest me how much amount can claim for 80C Deduction. Rs. 30000/- or 20% of 40000/- i.e.8000/-
and 8000/- per year for 5 year ////////pls help me.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 February 2011 Rs 8000/-

Actual amount of premium deposited or 20% of sum assured which ever is less shall qualify for deduction u/s 80C.

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2011 but sir this is sigle premium plan.i has been paid Rs.30000/- for 5 year.(Not every year) according to you i can claim only Rs. 8000/- for FY- 10-11 not for next year ...
but according to my lic agent i can claim 8000/- per year for 5 years..,....pls. reply

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 February 2011 Deduction for LIC Premium u/s 80C is available on payment basis subject to Max of 20% of Sum Assured. So you will get the deduction of Rs 8000/- only in respect of previous year in which payment was made.

"but according to my lic agent i can claim 8000/- per year for 5 years" He is wrong. Think logically you are paying Rs 30000/- then how can you claim (8000*5)= Rs 40000/- as deduction u/s 80C.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2011 Ok, Thank you so much.......you mean i can take benefit only 8000/- out of 30000/-

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 February 2011 Yes if you had paid Rs 6000 every year then you could have claimed Rs 6000 per year for 5 years as deduction u/s 80C.
But in this case you can claim only Rs 8000/-

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2011 Dear Sir One Question More......
If i paid my lic premium by cash ....then can i claim for 80C (For deduction in salary)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 February 2011 Yes. LIC premium deduction is available irrespective of whether paid in cash or by cheque. Only if medical insurance premium is paid in cash the deduction is not granted u/s 80D.

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2011 thank you so mouch sir ji for continue reply and support to me.....thanks...
Prakash Purohit...Mumbai

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