Cash Payment of LIP is Allowed for Deduction u/s 80C

Most of the subscribers of etaxindia.org inquired countless times to me that whether cash payment of life insurance premium to Life Insurance corporation (LIC)/ other life insurance companies is allowed for deduction u/s 80C or not.

So I want to clear that there is no provision under the income tax act to disallow any cash payment of LIP to LIC. Payment of LIP to LIC whether in cash or in cheque is allowed under section 80C.

The provision for cash payment is not allowed for deduction u/s 80D after amendment by Fiannce Act 2007. It is applicable w.e.f. Asstt Year. 2008-09.

Deduction allowed for payment on behalf of family members, whether by cash or by cheque.
Individual for the assessee himself, his or her spouse, and childern. In case of HUF, the payment of LIP for Insurance of any member/members of HUF.

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