insurance premium service tax

[a j]

can any body confirm whether service tax paid along with annual Life Insurance premium is also considered u/s 80C for exemption. My company is singing a new song I don't understand this. I'm pretty sure that both the premium part and the service tax part are eligible. please reply and clarify. You can mail me @    [email protected] or call me @ 0 93 93 93 4 007

[onkar kumar]

Yes, you are right premium alongwith S.T. component will be considered for exemption u/s 80C of IT Act

[a j]

Onkar ji tx for the reply.

my point here is can anybody give me a documentary proof for that.

our office and officers who are in the position of a Manager doesn't know this and the onus had fallen on me to prove it.

 

kindly help me out.

 

tx

[onkar kumar]

Just show him the wording of section 80C (2)(i) of the IT ACT,1961 (bare Act). It is like “…..... any sums paid or deposited …..... by the assessee to effect or to keep in force an insurance on the life of persons specified…......”. Service tax is an integral part of premium amount, It is a statutory payment, without it premium can not be accepted or deemed to be paid.

AI Summary

Service Tax on Life Insurance Premiums Eligible for Exemption under Section 80C of Income Tax Act A user inquired whether the service tax paid with an annual life insurance premium is eligible for exemption under section 80C of the Income Tax Act. The user expressed confusion over their company's stance and sought clarification. A respondent confirmed that both the premium and the service tax components are eligible for exemption. The user requested documentary proof to convince their office managers. The respondent suggested referring to the wording of section 80C(2)(i) of the Income Tax Act, which considers service tax an integral part of the premium amount necessary for the policy to be valid.