Life Insurance Premium eligible for deduction under section 80C
Life insurance premiums paid by the tax payer is eligible for section 80C deduction upto a maximum of Rs. 1.5 lakhs.
There is a minute detail which the tax payer need to be aware of before including the entire life insurance premium for section 80C benefit, otherwise their tax return filing might be rejected by the Income Tax authorities.
Maximum amount of premium which an individual is eligible for claiming in sec 80C(3) is limited to the below:
- Policies issued on or before 31-Mar-2012, limited to 20% of the sum assured
- Policies issued after 1-Apr-2012, the limit of 20% has been changed to 10%
- Policies issued on or after 1-Apr-2013, the limit of 15% is applicable for the individuals who meets the below criteria:
- Disabled or severely disabled individual as per Sec 80U of the IT Act, 1961
- Suffering from an ailment as mentioned under Sec 80DDB of the IT Act, 1961
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