Deduction U/s 80C

Hi Aditya

Your Client for get the deduction only for the Current financial year

It is not necessary for the payment to relate to the current financial. It may relate to any of the previous financial years.

The thing is just that it must not be more than 20 % of the total sum assured and the payment should be from the currenty financial year income.

premium paid to the extent of 20% of sum assured will be allowed as deduction even if the same relates to previous year/s

also as per sec 10(10)D the amt received at the time of maturity will not be exempt if premium paid for any of the years during the term of policy exceeds 20% of the sum assured

deduction u/s 80C deduction can be claimed on the payment basis,moreover max deduction that can be claimed in the case of insurance is 

a)20% of sum assured or 

b)the amount paid

moreover the deduction u/s 80C,80CCC &80CCD should not exceed Rs.100000

since deduction u/s 80C is claimed on payment basis,it dosen't matter for which year the payment has been made,what concerns is in which year payment has been made.

Thank You, All The Members