TDS applicable for life insurance

[Velayutham Panchatcharam]

Insurance taken for father / mother / any dependent is eligible for deduction under section 80C as per new circular no.20/2015 dated 02-Dec-2015

[DR.MARIAPPAN GOVINDARAJAN]

Thank you for the information.

[Ganeshan Kalyani]

The relevant phrase in the said notification refers as:

Section 80C, entitles an employee to deductions for the whole of amounts paid or deposited in the current financial year in the following schemes, subject to a limit of ₹ 1,50,000/-:

'Payment of insurance premium to effect or to keep in force an insurance on the life of the individual, the spouse or any child of the individual.'

In view of above, the queriest need to re-check the notification.

[Ganeshan Kalyani]

Sorry notification in my reply to be replaced as 'Circular'.

AI Summary

Clarification on TDS applicability for life insurance: Section 80C allows deductions for premiums paid for family, up to 1,50,000. A discussion on the applicability of TDS for life insurance highlights a query about tax deductions under Section 80C. A circular dated December 2, 2015, confirms that insurance taken for a parent or dependent qualifies for deductions. A participant clarifies that Section 80C allows deductions for insurance premiums paid for an individual, their spouse, or children, up to 1,50,000. Another participant corrects a reference from 'notification' to 'circular.' The discussion emphasizes the need to verify the circular's details for accurate application of tax benefits.