U/S 80C - Pl Clarify

Life insurance premium paid out of taxable income is eligible for deduction u/s 80C but this will be subject to 20% of  sum assured.

Further this deduction can be avail for the life insurance premium paid on the life of spouse, children only.

Here the child will include an illegitimate child or an adopted child also.

Ms. Bhavna & Mr Amit is right, but the limit is Rs. 1,00,000/-  not 20%. it should be either LIC, NSC, Mutual Fund, etc. the total exemption is Rs.1 Lac.

Please

Ms. Bhavna & Mr Amit is right, but the limit is Rs. 1,00,000/-  not 20%. it should be either LIC, NSC, Mutual Fund, etc. the total exemption is Rs.1 Lac.

Please refer Form 16 attached.

What Ms. Bhawna meant was that maximum premium allowed for deduction is 20 % of the sum assured .

Thanku Friends