LIC premium U/s 80-C

Hi Dhiraj,

I am appearing for my second grp in may. I am refering T.N. Manoharan, in that it is not mentioned anywhere that contribution to ULIP, 1971 and contribution to ULIP of LIC, MF which is exempt U/s 10(23D) is deductible maxm to 20% of sum assured. If u have that book u please check point no 4 and 6. Maxm dedcn U/s 80C is definitely 1Lakh.

okk... just wait for few minutes

Hi sonia... Sec 10 (23D) deals with the reciept of income i suppose, and this is exempted under this section... Its not related to payment....

While the querry raised overhere is regarding to payment of premium amount and getting deduction fr the same...

So, its about deduction [EXPENSE-PAYMENT] and not exemption [INCOME-RECEIPT]

If the ULIP is "with Risk" then it should be 20 % and if it is a Pension plan it should be 100%. Any contribution towards annuity is 100%. Nirav Wostan

Ya Dhiraj Section 10(23D) talks about exemption of income to Mutual Fund Company and not investors. 80C talks about deductions to be claimed by investors to various investments. So employee of Mr. Parmod Agarwal is investor and not MF Company.

As concerned with your query, it is clearly mentioned in clause  (XI) of sub section (2) of sec.80(C)

1. as a contribution in the name of any person specified in sub-section (4) for participation in any such unit-linked insurance plan of the LIC Mutual Fund 80a clause (23D) of section 10, as the Central Government may, by notification *in the Official Gazette, specify in this behalf;

*For notified Unit Linked Insurance Plan of LIC Mutual Fund, see Taxmann's Master Guide to Income - Tax Act.

And also the sub section (3) of Section 80-C read as under :

"The Provisions fo sub section (2) shall apply only to so much any premium or other payment made on an insurance policy other than a contract for a deferred annuity as is not in excess of twenty per cent of the actual capital sum assured."

So it will only be the 20% i.e Rs.10000/-. Hope this will clarify you. If i am wrong, plz.. correct me.

Dear All

I think Sonia is right, please confirm the same.

I think that in case of unit link plans full deduction of amount contributed is allowed as deduction.

only 20 % of sum assured will be allowed a sdeduction u/s 80c as here investment is not only to purchase units but along with it also buys insurance.