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LIC - tax implication

Tax planning 1192 views 9 replies

Newbie

lol

30 Points Joined July 2011

hello tax experts,

im having a small doubt. will b very thankful if someone can help me out.

i took lic policy yday 8-august-2011. its annual premium is 24,000Rs. i have paid 12000 yesterday. Remaining 12000 is due on 8-feb-2012.

can i claim under 80C section for this full amount? or i need to claim on pro-rata basis only?

i mean like - since i took this policy in august only, will it be like i can do claiming only for 2000X8 = 16000? or i am eligible to claim the full 24000 in this financial year itself

thank u very much

sakshi

Replies (9)

Sanat kumar

Chartered Accountant

265 Points Joined December 2009

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.

Mihir

Wealth Manager

5293 Points Joined December 2008

Financial Year - 1st April to 31st March.

Mihir

Wealth Manager

5293 Points Joined December 2008

Financial Year - 1st April to 31st March.

171061

Student

29 Points Joined August 2011

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

U S Sharma

glidor@gmail.com

21063 Points Joined January 2010

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.

Nitesh Gupta

Proprietor

55 Points Joined September 2010

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

Ganga

CA Final

101 Points Joined January 2010

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