. . 80C – Tax Questions and Answers

Section: 80C

  • Fee for default in furnishing return of income -Levy of fees for delayed furnishing return of income.

    Question of levy of fee will not arise as income is below taxable limit and therefore he is not liable to file return of income

  • Life insurance premium -Taxability of LIC Policy

    Section 80C provides that an assessee, being an Individual or HUF shall be allowed a deduction from gross total income of an amount not exceeding Rs. 1,50,000/- in respect of amount paid or deposited in the previous year in the specified savings listed in section 80C(2) of the Act. One of amount for which a policy holder is entitled for deduction is amount deposited to effect or to keep in force an insurance on the life of the policy holder. However, as per section 80C(3A) only premium paid on insurance policy which is not in excess of 10% of the actual capital sum assured, is allowable for deduction.