80c deduction on single premium policies

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What should be the quantum of deduction allowed to an assessee, if the premium payment mode is SIngle Premium and the value of premium exceeds 20% of the Sum Assured on such policy??

Moreover what are the types of policies eligible for deduction (subject to a maximum of 20% of Sum Assured) u/s 80C ???

Replies (6)

I think maximum 20% of the preimum paid is eligible for the deduction

Good question Saumik.

Even I am facing the scene in my company where several employees are questioning me on this wrt their section 80C deduction. The trick here is that if they give you the online premium paid certificate downloaded from LIC site, the employer cannot ascertain 20%, as, the policy value is not mentioned therein. Only in case of physical paid premium receipts this can be factored in.

Please update us in case you come to know of any other information on this from whatever source.

Regards,

according to me any policy which is mention about deduction of 8o(C) u can claim maximum 20% of sum insured in a single policy upto Rs one lac.
@ dipjyoti in my opinion, almost LIC's policy premium is less than 20% of sum insured so u can easyily consider whole premium as 8o C deduction as per online premium certificate.
@ dipjyoti one point u should check that these are eliglible for 80 C deduction.

Anupam what u have stated is true but there are cases where the insured is required to pay one time premium and in all such cases the amount paid as premium exceeds 20% of the Sum Assured. 

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