80C - LIC Annutity Plan, 10% of sum assured is only allowable deduction in respect of FY 2012-13 whereas 20% of sum assured has been allowed in the F.Y.2011-12.
Please clarify why the department has reduced from 20% to 10%
Rajagopal K (Taxation Manager) (108 Points)
11 January 201380C - LIC Annutity Plan, 10% of sum assured is only allowable deduction in respect of FY 2012-13 whereas 20% of sum assured has been allowed in the F.Y.2011-12.
Please clarify why the department has reduced from 20% to 10%
Nikhil Kaushik
(Fellow CA)
(85435 Points)
Replied 12 January 2013
The whole idea is to persuade people to buy Insurance more for safety instead of tax saving purposes. this shall go further down from 10% to 5% once DTC comes into force. That shall actually force assesses's to buy term plans instead of money back plans..
CAclubindia
