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July 1, 2014

Premium under 80C

As per wording of Section 80 C deduction is allowed for

" any sums paid or deposited in the previous year" 80C(2)

Therefore if you have paid any premium in arrears or in advance during previous years you can claim the deduction of same u/s 80C in the previous in which such premiums have been paid irrespective of the years to which these premiums relate.

As the Term used is Any sum therefore as per my understanding even the late fee should be allowed as deduction,  but as per my general search on internet the experts are of the opinion that late fee is not allowed as deduction.

Also please note that 80 C deduction will become invalid if

1) Total sum assured is less than 10 times of the premium paid. 80C(3A)
2) Policy is cancelled before paying premium for 2 years (5 years in case of ULIP). Sec 80C(5)

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