deduction in respect of LIC premium under section 80c - Professionals - Taxation - TIK Share
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deduction in respect of LIC premium under section 80c


Ankit Sharma

2015-07-06

Sir, I have made following payment for LIC, how much deduction can I claim under section 80 C of Income tax act?

a. Paid premium of Rs 80,000 for LIC taken on my name. This policy was issued on 1/4/2010, and actual capital sum assured was Rs  2,00,000

b. Paid premium of Rs 25,000 for LIC taken on my wife's name. This policy was issued on 1/06/2012, and actual  capital sum assured was Rs 1,50,000

c.Paid premium of Rs 1,00,000 for LIC taken on my Son's name, who is handicapped, covered u/s 80U. This policy was taken on 1/7/2013, and actual capital sum assured was Rs 4,00,000

Ankit Sharma

2015-07-06

Under section 80C of Income tax act, assessee being individual or HUF, can avail deduction only upto Rs 1,50,000.

Deduction under section 80C of Income tax act in respect of LIC premium -

a. LIC issued on or before 31/03/2012 - In this case assessee can claim deduction to the extent of 20% of actual capital sum assured.

b. LIC issued between 01/04/2012 to 31/03/2013  - Assessee can claim deduction to the extent of 10% of actual capital sum assured.

c. LIC issued on or after 01/04/2013 -

i) If LIC is taken on the life of a person who is having severe disability as specified under section 80U or who is suffering from disease or ailment as specified under section 80DDB, then assessee can claim deduction upto 15% of actual capital sum assured.

ii) In any other case assessee can claim deduction upto 10% of actual capital sum assured.

 

So in your case -

In point 'a' you can claim deduction of Rs 40,000 being 20% of 2,00,000, as LIC was issued on or before 31/03/2012

In point 'b' you can claim deduction of Rs 15,000 being 10% of 1,50,000, as LIC was issued on or after 01/04/2012, and person was not suffering with disablity/ailment specified u/s 80U/80DDB

In point 'c' you can claim deduction of Rs 60,000 being 15% of 4,00,000, as LIC was issued on or after 01/04/2013, and the person on whose name LIC was taken was suffering from severe disability specified under section 80U.

 

 

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