Deduction u/s 80C in respect of insurance premium, etc.

Applicable to

An Individual or a Hindu Undivided Family (whether resident or non-resident)

Condition to be satisfied

Assessee has made a deposit or an investment or an expenditure in any one or more of the Specified Items (click here for Specified items) during the previous year.

 Quantum of Deduction

Deduction under this section shall be minimum of the following:

• Aggregate of the eligible contributions, expenditure or investments (click here for Specified items)
  

• Rs.100000

Lock in Period

• Life Insurance Policy: The Life insurance policy cannot be surrendered unless premium for 2 years on such policy has been paid.

• Housing Loan: The house acquired cannot be transferred before 5 years from the end of financial year in which the possession of such property is obtained by assessee.

•  Unit Linked Insurance Plan: The participation in plan cannot be ceased before contribution in respect of such participation has been paid for 5 years. 

•  Shares or debentures of infrastructure company or power company or mutual fund: Equity shares, debentures, etc. cannot be sold or otherwise transferred within 3 years from the date when name of the assessee for those shares or debentures has been entered in the register of member or debenture holder by the company or the Mutual fund.

•  Investment in Senior Citizen Saving Scheme / Post office Time Deposit: Such amount, including interest accrued thereon, shall not be withdrawn by the assessee from his account, before the expiry of 5 years from the date of its deposit. However, any amount received by the nominee or legal heir of the assessee, on the death of such assessee, shall not be included.

Consequence in case of violation of lock in period

If the above lock in period is violated, then entire amount of deduction allowed earlier in any previous year, shall be treated as taxable income in the year in which default is made.