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LIP premium

05 May 2020

how much deduction in 80C can be taken ? Any amount of premium paid subject to max. 1.5 lacs or the rule of 10%. 20% of sum of capital assured will be applicable ?

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2 Replies

RAJA P M ("Do the Right Thing...!!!") (127167 Points)
Replied 05 May 2020

You can avail 1.50 lakhs deduction as per section's ceiling. Also the 10% sum is applicable for premium.

Suresh Kumar (Accountant) (50 Points)
Replied 05 May 2020

1st point is how much maximum allowed in 80c i.e. 1.5 lakhs (life insurance premia, tuition fee, PPF, GPF, NSC etc). . 2nd point is u can claim premia of life insurance policies under 80C only for such policies which have a premium of less than 20% of the sum assured. eg. If the policy sum assured is 10 lakhs, and annual premium is 2,10,000 then u cannot claim that policy u/s 80C. however if annual premium is 2 lakhs or below then u can claim u/s 80C. (and this 2 lakhs will be restricted to 1.5 lakhs ceiling)