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Claim of Insurance Premium

tushar jain (Service) (107 Points)

18 July 2007

If i pay the insurance premium by cash, then is it still allowed as deduction under section 80C. Is it similar rule for both Life insurance and mediclaim.

Thanks & Regards

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vanita gupta (chartered accountant) (16 Points)
Replied 19 July 2007

hi for life insurance we get deduction u/s 80C for which deduction is allowable even if made in cash.For claiming deduction of mediclaim , payment has to be made by cheque .It can ce a bearer, crossed , or a/c payee cheque. From a.y.2008-09 payment for mediclaim can be paid by any mode other than cash.(re - taxmann ready reckoner)