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

Insurance premium deductibility: service tax paid with life insurance premium can be included for Section 80C deduction.
The service tax component charged with a life insurance premium is treated as part of the premium for deduction under Section 80C because Section 80C allows deduction for "sums paid" to effect or keep in force a life insurance policy, and service tax is a mandatory statutory charge necessary for acceptance of the premium.