clarification on 80 c

[Guest]

dear sir,

i would like to know whether one can claim the premiums paid towards LIC in the month of March 2012 for this assessment year under Section 80 C of incometax act.

chakravarthy.

[RAJAGOPALAN BALACHANDRAN]

March,2012  falls  in  the  financial  year 2011-12.  The  LIC  Premium  paid  in  March,2012  can  be  claimed  as  deduction  under  Section 80C   in the  previous  year  2011-12  for  which  the  assessment  year  is 2012-13. But  the  claim  cannot  be  made  in  the previous  year  2012-13

AI Summary

Deduction under Section 80C: premiums paid in March belong to the earlier financial year and must be claimed then. Premiums paid in March 2012 fall within the financial year 2011-12 and can be claimed as a deduction in that previous year (assessment year 2012-13); the claim cannot be made in the subsequent previous year.