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Deduction u/s 80c

kamal khilwani (AUDIT ASSISTANT) (26 Points)

23 September 2011  

If insurance policy is issued on 31st march 2011 and cheque is also given on 31st march 2011 to insurance company but the said cheque is realised on 3rd april 2011,  so is the assessee is entitle to claim deduction u/s 80c of said insurance premium in A.Y. 2011-12..?

plz reply.....


 13 Replies

surender (Manager Accounts) (144 Points)
Replied 23 September 2011

Y in my opinion  Yes. Policy has been executed in  FY10-11. Payment is also made in 10-11. so it can be claimed.wait for more review.


yes it will be allowed as same was realised 

Roopali Kadam (CA cleared- In Job) (1393 Points)
Replied 23 September 2011

yes i too think it will be allowed

Arniv Sharda (CA Final) (3006 Points)
Replied 23 September 2011

it will be allowed as deduction in A Y 2011-12


amit jain (Chartered Accountant) (532 Points)
Replied 24 September 2011

yes as receipt will be of the same day.. but subject to realisation of cheque

CS Bijoy (Expert) (6394 Points)
Replied 24 September 2011

Yes because payment date is important not the realization date of cheque.

Lakshy (Semi-Qualified C.A. PGDFM BCom.)   (1765 Points)
Replied 24 September 2011

It is allowed for F.Y. 2010-11, because your receipt will contain date of cheque issue.

Ashok kumar (CA Final) (482 Points)
Replied 24 September 2011

based on the date of receipt the financial year considered. if the receipt date is 31st march 2011 then considered for 2010-11 only.

Replied 24 September 2011

Deduction is allowed subject to the Realisation of cheque....

Yes allowed.......

sibananda (Student) (32 Points)
Replied 24 September 2011

Deduction must be claimed in that Assessment Year.The main thing (As per Rule) is that the date of payment not the realisation of cheque.

Rup Kumar (finance manager) (288 Points)
Replied 24 September 2011

Yes. Deduction will be allowed in the year in which payment is made provided the cheque is honoured.

Chirag Shah (Accountant) (22 Points)
Replied 25 September 2011

as the cheque is cleared the cheque will take effect from issue date.

Mayank Ahuja ("Learner") (586 Points)
Replied 14 October 2011

Dear All,

Logically Sec.80C allowed on Payt Basis,

But If we had paid Premium which was due on 30th march 2011 (but due to 1month grace period is allowed by Insurance Co., we paid same  on 30th Apr.

.If we paid Insurance Premium for 30th April 2011. Then Can we claim Deduction in AY11-12 Return or Not...

Sly if in above case if Policy has been elapsed on 10th Jan but we revive the same policy on 30th Apr By giving additional charges.

Pls reply to both cases.



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