Life insurance cover for home loan comes under 80C ?

[venkat eswaran]

Dear All,

I took a home loan from HDFC bank for Rs.1250000/- for that i have covered life insurance under HDFC Life cover for home loan protection plan and paid Total premium Rs.44600/-  for 12 years along with home loan. So total sum assured is Rs.1294600/- .

Whether i can get IT benefit under SEC. 80C for this premium paid amount of Rs. 44600/-. it the one time premium paid and there is no return benefit.

Kindly give ur valuable feedback.

Thanks.

Venkat

[CAGOPALJI AGRAWAL]

To my view, it is deductible if it qualified the conditions of life insurance policy as the premium is less than 10 percent of the sum assured.

AI Summary

Life insurance premium eligibility under tax provision depends on whether the premium is below the prescribed proportion of sum assured. Whether premiums for a lender linked life cover qualify under Section 80C depends on two operative tests: the contract must qualify as a life insurance policy for tax purposes, and the premium must be below the applicable limiting ratio. The advisory states the premium must be less than 10 percent of the sum assured to meet the statutory premium to sum assured threshold for deductibility.