In respect of the some investments/deposits eligible for deduction under section 80C, in some cases , the law provides a minimum period of holding for claiming deduction u/s 80C otherwise it will be taxable. Such cases are given below-
Time Limit for qualifying deduction u/s 80C
- Unit- Linked insurance plan (ULIP) – 5 years
- Life Insurance Premium – 2 years
- Cost of Purchase/ Construction of a residential House property including repayment of Loan – 5 Years
- Deposit under senior citizen saving scheme – 5 Years
- Time deposit in post office – 5 Years
In the case of withdrawal before 5 years by the depositor during his lifetime from amount deposit under
- Senior Citizen Saving Scheme
- Time deposit in Post Office
Effect
- The amount withdrawn (excluding interest which has already been taxed in earlier year) will be taxable in the year of withdrawal.
In the case of
- Unit- Linked insurance plan (ULIP)
- Life –Insurance Premium
- Cost of purchase/construction of a residential house property including repayment of loan
Effect
- Any contribution made towards the above plan in the said previous year will not be qualified for deduction u/s 80C
- The quantum of deduction already taken in the preceding years would be deemed as income of the taxpayer in the year in which contribution to the plan is terminated.
Important Notes for claiming deduction u/s 80C
- The above deductions are available only on payment basis.
- It may be noted that the aggregate amount of deduction u/s 80C, 80CCC and 80CCD cannot exceed Rs. 1,00,000/-
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has the limit for loss on house property changed for assessment year 2010 – 2011 (f.Y.2009-10) previously the limit was 150000.00? Has the limit u/sec 80 Cb 1 lakh has this changed or is it still the same for Assessment year 2010-2011 (F.y.2009-10)? has the mediclaim limit changed from 15000.00 or is the limit same for a.yr 2010 – 2011?
Sir,
ELIGIBILITY TO CLAIM U/S.80-C
I have paid Lilfe Insurance Premium for the F.Y.2008-09 – Rs.30,000/-
and filed the Income tax return for the same year within the due date.
But I could not claim deduction for 80C – due to not having receipt for the LIP payments. – any how I have filed IT return without claiming deduction.
My doubt is,
Now I have the above mentioned LIP payments receipts, Can I claim the deduction in this year for the previous year (2008-09) LIP payments ?
Please clear with details.
Thanks.