Tax Benefit on LIC/other insurance payments made through credit card.

Anks 46
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Hello,

Can someone advise if one is eligible to get tax benefit, if LIC/other insurance/annunity plan/pension plan, premium payment are made through a credit card?

Is the tax relief same as this would be in the case where payment is made through cheque/draft/cash?

If yes, any reference to IT act wih appropriate section, sub section, etc. will be useful.

Thanks

Anks.

credit-card-payment online-premium-payment life-insurance
1 Answers

No matter how the payment is made to insurance company, income tax benefit would be applicable if insurance falls under 80C/80D section.

Paying through credit card is just a method of payment and does not affect the tax benefits. Some insurance companies like LIC may not accept credit card payment due to their expense minimization (companies may have to pay upto 2-5% to credit card companies or payment gateway for online transactions).

Pankaj Batra5212

Thanks for the response & clarification.

Regards

Ank's

Anks•
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