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-

[Am. Act 600:s.6]
[Am. Act A429:s.8; Act 513:s.10]
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]

[Am. Act 600:s.6]
[Subs. Act 608:s.12]

[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]

[Subs. Act 557:s.12]
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]

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.

[Ins. Act 544:s.8]

Related reading:
[Act A429:s.8; Act 513:s.10; Act 544:s.8; Act 600:s.6; Act 608:s.12; Act 557:s.12]

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