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LIC in Balance Sheet
My client have paid lic premium, so whether to show it in the asset side as investment or deduct it from capital.
Replies (4)
In general practice, LIC premium is treated as 'Drawings', hence deducted from the Capital Fund. If it is held as an instrument of investment then you can show this in the Asset side under the head Long Term Investment.
Yes It is Treated as personal expenditure and hence deducted from Capital.
My client has paid single premium toward LIC Policies of INR 404412 [3 policies] and on preparation of the computation the same has not been taken for deduction u/s 80C. Now my question is can I show the single premium amount [one time premium] in the asset side in the balance sheet.... Please suggest your valuable advise
As client paid for the premium which is tax free as per sec 80C.. You need to deduct it from your capital Account..
Thank you
Harshit Arun Sharma (CFA)
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