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S 80c- deduction for lic premium paid

Tax planning 1118 views 6 replies

Govind Rathore

CA Final

543 Points Posted on 03 April 2015

Hello,

Mr. X wants to claim deduction under section 80C for the LIC Premium paid for his family.

Details: AY 2014-15

Mr.X - Premium Rs. 2507 (Sum Assured Rs. 50000)

Mrs X - Premium Rs. 23150 (Paid for 3 Years)( Sum Assured Rs. 100000)

Both Polices taken before 31-03-2012

What will be the premium amount that can be claimed?

Replies (6)

Vivek Venkataram

Just cleared CS(441/800) now C.A Final A

772 Points Posted on 03 April 2015

Lic premium paid for yourself your wife and your children are eligible for deduction under 80c. So total can be 2507 plus 23150 pro rata for 1 year. okies ?

Govind Rathore

CA Final

543 Points Posted on 03 April 2015

But only 20% of sum assured if policy date is before 31-3-2012

10% of the sum assured if policy date is after 1-4-2012

can be considered right?

if yes then the celing limit will be applied policy wise or overall?

Amrita vyas

chartered accountant

2605 Points Posted on 03 April 2015

Ceiling limit is policy wise...10% will be checked for every single policy alone

Vivek Venkataram

Just cleared CS(441/800) now C.A Final A

772 Points Posted on 03 April 2015

You are well inside policy limit anyways

Rajesh Kumar Gupta

Senior Divisional Manager

714 Points Posted on 03 April 2015

Mr.X 2507 is eligible. Mrs. X Rs. 20000. But if policy taken before 01.04.2003 then 23150. Another disadvantage on Mrs. X policy that policy payments will not be exempted u/s 10(10D).

raman kejriwal

st xaviers college

64 Points Posted on 04 April 2015

As both the policy was taken before 1.4.12 deduction for mr x = 20% of 500000 or 2507 whichever is lowre I.e 2507 And for mrs x= 20% of 1000000 or 23150 whichever is lower I.e 20000