Hi,
There was a policy premium due for March 2021. But, its premium was paid in April 2021.
Its premium is deductible for tax saving under section 80c.
Now, can that tax deduction be claimed for the financial year 2021-22 since the premium was paid in this year?
Or it could have been claimed only for the year 2020-21 since the premium was actually due for that year.
Please help.
Thanks in advance!
While you shouldn't, the reality is that yes, you can.
But ensure that you stay consistent and don't double count in the future to avoid needless complications.
To repeat again, you shouldnt, but you can!
Oh and needless to day, make sure your books are balances (ie if you're claiming the expense, it must have gone from somewhere!).
Thank you everyone!
CAclubindia
