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Deduction U/s 80C

R.Suresh (Sr. Executive) (394 Points)

11 March 2010

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...

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14 Replies

shushantsinghal (BCOM(HONS),C.A) (283 Points)
Replied 11 March 2010

max RS 20000/-

Shikha Sharma (Chartered Accountant) (311 Points)
Replied 11 March 2010

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

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 11 March 2010

Yup...

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

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14477 Points)
Replied 11 March 2010

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

Ronak Shah (Services) (35 Points)
Replied 11 March 2010

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%)

Sandeep Ladha (N.A) (435 Points)
Replied 11 March 2010

Agree with all........

KRISHNA PALLAVUR (CA FINAL) (79 Points)
Replied 11 March 2010

Yeah... restricted to 20% of sum assured..

Nomula Sreenivasarao (DGM -Accounts) (163 Points)
Replied 11 March 2010

Only 20% of sum assured will be allowed.

pankaj (International Tax consultant) (66 Points)
Replied 12 March 2010

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.

Sharad Suman Das (art) (141 Points)
Replied 12 March 2010

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

C.Balaji (Learner) (1867 Points)
Replied 12 March 2010

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

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

Piyush Dugar (Partner in KPJ & Co.) (29 Points)
Replied 13 March 2010

under section 80c deduction in respet of lic preniun is allowed upto a maximum limit of 100000 per year.the premiun can be pai for himself ,spouse any of the children and respective parents. BUt the premium Cant exceeds 20% of the Sum Assured.

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