Whether single premium life insurance policy is fully eligible u/s 80 C or it is restriceted upto 20% of sum assured ?
Whether single premium life insurance policy is fully eligible u/s 80 C or it is restriceted upto 20% of sum assured ?
80C benefit restriction of premium upto 20% of sum assured, applied for all field, including single premium policies.
upto 20% of sum assured will be taxable
yes, it is restricted upto 20% of sum assured, single premium policies are also covered in this restriction
Upto 20% is exempt from the income tax excess over shall be taxable or if single premium is exceed from the 20% of sum assured is taxable and only excess over to 20%.
As per Section 80C, the amount of premium paid in respect of a policy shall be eligible for deduction only to the extent of 20% of the sum assured, irrespective of the fact whether it is a single premium policy, and any amount in excess shall be naturally taxable.
Whether Single premium life insurance policy or otherwise , if it exceeds 20% of Capital sum assured then its taxable n no benefit on excess is available u/s 80C.
| Originally posted by : TusharSSampatM.Com CA,CS-FINAL | ||
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Whether Single premium life insurance policy or otherwise , if it exceeds 20% of Capital sum assured then its taxable n no benefit on excess is available u/s 80C. |
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only 20% is exempt whether single or otherwise..
| Originally posted by : TusharSSampatM.Com CA,CS-FINAL | ||
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Whether Single premium life insurance policy or otherwise , if it exceeds 20% of Capital sum assured then its taxable n no benefit on excess is available u/s 80C. |
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Pls. advice me any exmple..
Very confusing..
Deposited 50000/- for sum assured 75000/-. How come deduction is 30000/-?
Nevertheless, 20% of the sum assured will be claimable as deduction i.e. 15000/- only. Rest all is taxable.
What is the meaning of sum assured in case of LIC life insurance policies.?
The meaning of insurance and assurance in case of insurance policies is the same. Assurance means protection against financial loss arising out of life contingencies. The term ASSURANCE is used in case of life insurance policies whereas INSURANCE is used in case of any general insurance.
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