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
The amount withdrawn (excluding interest which has already been taxed in earlier year) will be taxable in the year of withdrawal.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
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/-