Taxability on insurance single premium paid for 20 years

[SAFETAB LIFESCIENCE]

Dear Experts,

For availing a Home Loan by our employee, Axis Bank insisted to take a Key Man Life Insurance Policy for the Loan amount as sum insured and the period for the total loan term of 20 years.

Our employee paid about ₹ 45,000/- as single premium for the tenure from 2017 to 2037 and asking claim under 80-C for the total premium of ₹ 45,000/-. Whether I can allow ??

AI Summary

Employee's Single Premium for Key Man Insurance Policy May Be Deductible Under Section 80-C of Income Tax Act. A company inquired about the taxability of a single premium payment made by an employee for a Key Man Life Insurance Policy required by Axis Bank as part of a home loan agreement. The employee paid 45,000 as a single premium for a 20-year term from 2017 to 2037 and sought to claim this amount under Section 80-C of the Income Tax Act. An expert responded, suggesting that the claim under Section 80-C could be allowed.