INCOME TAX ACT 1967 (ACT 53) PART III - ASCERTAINMENT OF CHARGEABLE INCOME Chapter 7- Chargeable income
Section 49. Deduction for insurance premiums.
(1) Subject to this section, in the case of an individual resident for the basis year for a year of assessment who in that basis year has-
(a) paid any premium for any insurance or deferred annuity other than an insurance policy to which subsection (1C) applies;
[Am. Act 600:s.6]
(b) as an employee or as a self-employed person within the meaning of the Employees Provident Fund Act 1991[Act 452] made or suffered the making of a contribution to an approved scheme or the Employees Provident Fund as the case may be; or
[Am. Act A429:s.8; Act 513:s.10]
(c) made or suffered the making of any contribution under any written law relating to widows' and orphans' pensions or under any approved scheme within the meaning of any such law,
there shall be allowed for that year of assessment a deduction of the aggregate amount of the payments or contributions or both or a deduction of five thousand ringgit whichever is the less.
(1A) For the purposes of subsection (1) , where subsection 50(2) or 50(3) applies, the total deduction under that subsection shall not exceed five thousand ringgit.
[Subs. Act 608:s.12]
(1B)
(a) Subject to this section, in the case of an individual resident for the basis year for a year of assessment who has paid any premium for insurance on education or for medical benefits, there shall be allowed for that year of assessment in addition to the deduction allowed under subsection (1), a deduction of the aggregate amount of the payments or a deduction of three thousand ringgit, whichever is the less;
[Am. Act 600:s.6]
(b)for the purposes of paragraph (a) , where subsection 50(2) applies, the total deduction under that paragraph shall not exceed three thousand ringgit.
[Subs. Act 608:s.12]
(1C) In the case of an individual resident for the basis year for a year of assessment who in that basis year has utilized any amount standing to his credit in the Employees Provident Fund to purchase an insurance policy determined by the Employees Provident Fund Board, there shall be allowed for that year of assessment a deduction of one thousand ringgit and where subsection 50(2) applies, the total deduction under this subsection shall not exceed one thousand ringgit.
[Ins. Act 600: s.6; Am. Act 608:s.12]
(2) For the purposes of subsection (1), no regard shall be had to any contribution to an approved scheme unless the contribution was obligatory by reason of-
[Subs. Act 557:s.12]
(a) any contract of employment of the individual claiming a deduction in respect of the contribution; or
[Subs. Act 557:s.12]
(b) any provision in the rules, regulations, by-laws or constitution of the scheme,
and, where the contribution was partly obligatory by reason of such a contract or provision and partly not so obligatory, regard shall be had only to the part which was so obligatory.
[Subs. Act 557:s.12]
(3) In this section 'relation to an individual claiming a deduction under subsection (1) , "insurance" and "deferred annuity" '. mean an insurance or deferred annuity contracted for by the individual-
[Am. Act 600:s.6]
(a) on the individual's life;
(b) on the life of a wife of the individual or, where the individual is a female, on the life of the individual's husband; or
(c) on the joint lives of the individual and a wife or wives of his or on the joint lives of two or more wives of his or, where the individual is a female, on the joint lives of-
(i) the individual and her husband;
(ii) the individual, her husband and any other wife or wives of his;
(iii) the individual and any other wife or wives of her husband; or
(iv) her husband and any other wife or wives of his,
being an insurance or deferred annuity contracted for with an insurance company for securing on death either a capital sum or a deferred annuity or both (whether in conjunction with any other benefit or not) or an insurance or deferred annuity contracted for with a government, a public body or the controlling authority of any nationalised insurance business.
(4) For the purposes of subsection (1B) reference to an insurance means an insurance contracted for by an individual for himself, his wife or child, or in the case of a wife, for herself, her husband or child.
