If I make payment of Life Insurance Premium in advance, which is due in next financial year i.e. after 31st March'2010. Can I claim that in 80 C deduction in the Income Tax deduction for the current Financial Year?
If I make payment of Life Insurance Premium in advance, which is due in next financial year i.e. after 31st March'2010. Can I claim that in 80 C deduction in the Income Tax deduction for the current Financial Year?
Yes, you can claim for any paid premium.
Life Insurance Premiums
Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.
You can claim all the Life Insurance Premium amount.Quote:
Originally Posted by Harish Rawat
As per section 80C -
"Deduction is available on the basis of specified qualifying Investments/Contributions/Deposits/Payments made by the taxpayer during the previous year".
What about if I have made any payment for premium arrear?