Deduction U/s 80C

max RS 20000/-

Shushant is right. Deduction is restricted to 20% of sum assured.. So deduction would be Rs. 20,000.

Yup...

Its going to be 20%.., i.e Rs. 20000

if you are paying this amount then you can take 20000.

Originally posted by : R.Suresh
	Hi All, I have one query in Deduction U/s 80C. One of my colleague given a premium paid receipt for Rs 30,000/- PA. but the sum assured value is Rs. 1,00,000/- in this case i going to take deduction u/s 80C for Rs 30,000/- or 20% sum assured value. Please advice me...

 The Section Stands as Life Insurance Premium Paid, subject to maximum 20% of Sum Assured value.

Calcuation as follows, LI Premium Rs 30,000/- Subject to Maximum Rs 20000(S.A.100,000 @ 20%)

Agree with all........

Only 20% of sum assured will be allowed.

Hi all. it's true that deduction is maximum for 20% of the um assured but please keep in mind its not a life insurance for deffered annuity where there is no such restriction of 20% of sum assured.

AS PER PROVISIONS U/S 80C "AMOUNT OF PREMIUM SHOULD NOT EXEED 20% OF SUM ASSURED" HENCE IN THE ABOVE CASE IT SHOULD NOT EXEED Rs.20000 i.e. 20% OF SUM ASSURED

Agree with all...............

Actual Premium paid or 20% of Sum assured whichever is less..........

YUP !!!!!!1

MAX 20% OF SUM ASSURED !!!!!!!!

Deduction Allowed U/S 80 c for Lic

maximum premium  Amount Allowed is restricted to 20% of sum assured for each year

So here in your case only 20000 will be allowed as dedeuction