I have paid Rs.20000 as premium for my life insurance and GST @ 18 of Rs.3600 (Total = Rs.23600). I want to know can i take deduction of total Rs.23600 from Income tax under deduction from income.
Section 80C of Income Tax Act, 1961 allows Deduction in respect of Whole of the amount paid or deposited by an assessee; individual or HUF, to effect or to keep in force an insurance on the life of persons. Such Persons, in case of an Individual, may be individual itself, his wife or husband, and any child of such individual. while in case of HUF, such persons may be any person being the member of the HUF. Thus, deduction shall be allowed not only to sum paid towards life insurance premium but also towards GST charged thereon. Also, deduction shall be allowed not only to sum paid towards life insurance premium and GST thereon of individual assessee itself but also the sum towards life insurance premium and GST charged thereon to effect or to keep in force an insurance on the life of wife or husband of the individual assessee and any child of the Individual assessee provided the sum so paid is paid by assessee and the aggregate of the sums doesn't exceed the capping amount of Rs. 1,50,000. The deduction under 80C is limited to Rs. 1,50,000 and any amount of such sum exceeding Rs. 1,50,000 shall not be allowed as deduction. Accordingly, In your case you can claim entire sum (Sum towards premium as well as GST charged thereon) as deduction i.e. Rs.23600 and not just sum towards premium amount i.e. Rs. 20,000.
By- Vineet Choubey
Yes you can take the benefit of RS. 23600 as LIC under section 80C of income tax act as such amount is your actual cost to purchase LIC
By- HIMANSHU GUPTA