4 Replies to “Tax exemption on premiums can only be availed if paid by cheque?”

  1. all the modes of payment are valid…
    you have to seek an annual statement of payment… from the concern to whom you have paid premiums…
    and deposit the same to the IT deducting authorities…

  2. You can get exempted for other forms of payment also. But during filing you have to produce the corresponding receipts for all these payments.

  3. If the premium payment is less than Rs. 20000 all mode of payments will be allowed for deduction. If the premium paid exceeds Rs. 20000, payment should have been made only by cheque, to get tax benefits.

  4. You will definitely get the benefit of deduction on account of LIC premium payment provided the Insurance authorities realized the money which you paid either by credit cards or ECS. But, one thing you should remember that LIC premium should not be paid with the help of credit card. This is because, in order to get the benefit of deduction from the gross total income the payment should be made from the taxable earning and not from the loan money.

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