whether it is necessary to pay LIP/Medi claim policy through cheques only to avail deduction under chapter vi a? If it is paid in cash then deduction would be disallowed or not?
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Deduction
Replies (3)
Hi Saurav,
Sorry.. please see correct answer here..
Your auditor is right, for mediclaim deduction premium should be paid by any mode other than Cash. Means if insurance premium is paid by cash then deduction is NOT available.
Thanks,
Shobhit
But during the course of an audit, i found that previous auditor has disallowed the deduction related to medi claim policy as it was paid in cash.
Dear Sourav Mediclaim premium has to be paid by any mode other than cash.(Refer Section 80D)
LIC premium can be paid in cash restricted to 20% of Capital sum assured. (amended to 10% vide Finance Act 2012)
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