Sec. 10(10D)(C) and Sec. 80C- Currently, income under life insurance policy is exempt provided that the annual premium payable is less than 20% of the actual capital sum assured.
With effect from 1st April 2013, the amendment proposes to reduce the condition of premium amount from 20% to 10% of the actual capital sum assured.
A similar amendment has been made in section 80C whereby maximum deduction for premium will be equal to 10% of actual capital sum instead of 20%.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.