SECTION 80C

Whether Deduction under section 80C is allowed if premium is paid on Lapsed Policy ?

Pl. clarify

 

Replies (21)

 I think No

Yes

Yes..

The deduction u/s 80C can be claimed if you are paying premium for a lapsed policy

Originally posted by :Krutsesh Patel
"  I think No "


 

Ofcoarse it is

Yes u can claim deduction.....

For Section 80 C you have to keep the insurance contract alive for the lock in period otherwise whatever 80C you have claimed already will be added back to your income income in the previous year of lapsing.

Now if your policy was old and it lapsed due to default in payment within grace period and within the same financial year you had it reinstated, it would be a continuity of the same policy and there would be no problems. If you reinstate it after a very long time say that it goes to the next financial year, then after reinstatement, for safety sake you at least continue without fail till the new lock in period determined from date of reinstatement.

The problem comes up if your initial policy itself lapses before the lock in period for 80C. If you have not reinstated it before the end of the previous year, you will have to surrender your deductions claimed already as income from Other Sources. However, when you get policy reinstated,  your lock in period is reset and it will be like a fresh policy  that you have to keep alive for a lock in period based on date of reinstatement.

In either case you can claim 80C on the premium paid but you should comply with the conditions of deduction.

yes u can claim deduction

yes...u can claim..

Whether deduction is Allowed on late fee of LIc?

The deduction u/s 80C can be claimed if you are paying premium for a lapsed policy

Deduction can be claimed

Deduction is not allowed on late fee charges or interest.

 yes

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