LIC - tax implication

Hi Sakshi,

Since you have invested in Lic policy in the PY 2011-12, you will get deduction u/s 80C in PY 2011-12.

You will get Rs 24000 deduction, if You pay the next premium in feb.

Financial Year - 1st April to 31st March.

Financial Year - 1st April to 31st March.

LIC Premium paid during the year is eligible for deduction under section 80 C and not on pro rata basis.

80C claim of LIC premium is available on actual payment basis but subject to limitation of 20% of sum assured, 

if your policy sum assured amount is below 120000/- then the premium available for deduction u/s 80C would be limited to 20% of sum assured only.

LIC payment deduction u/s 80C allow at payment basis not pro rata basis 

HI u can Claim Deduction of RS.24000 fully if pay 12000 in Feb atleast upto march 2011 with fine , therefore lLIP deduction should be claim on payment basis

thank u all for replies

sakshi

Whatever you paid (excluding Interest Thereon & premium in Excess of 20% maturity premium) are allowed as deduction