Life Insurance Premium: Deduction under section 80C of Income Tax Act 1961.

Life Insurance Premium: Deduction under section 80C .

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Life Insurance Premium: Deduction under section 80C of Income Tax Act 1961.

Eligible deduction under section 80C of Income Tax Act 1961

Individual can insure life of himself, spouse and children for claiming deduction under section 80C. The deduction is available subject to below mentioned conditions:

  • Life insurance policy issued from 01.04.2012

Deduction allowed is premium paid not in excess of 10% of capital sum assured

  • Life insurance policy issued from 01.04.2003 and on or before 31.03.2012

Deduction allowed is premium paid not in excess of 20% of capital sum assured

Individual suffering from disability or suffering from specified disease

  • Life insurance policy issued from 01.04.2013

Deduction allowed is premium paid not in excess of 15% of capital sum assured.

Notes:

  • In case of an individual, deduction is available in respect of policy taken in the name of taxpayer or his/her spouse or his/her children.
  • In case of a HUF, deduction is available in respect of policy taken in the name of any of the members of the HUF.
  • No deduction is available in respect of premium paid in respect of policy taken in the name of any person, other than given above.
  • Maximum deduction allowed under section 80C is Rs 150000.
  • Amount paid in cash is also allowed as deduction.
  • Non Resident Indian can also avail the benefit of section 80C life insurance premium deduction.
  • Amount deposited or paid can only be claimed as deduction.

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