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Suhasdarshan (Associate)     08 December 2014

Lic premium - who can claim

Mr. A is a salaried employee and his wife Mrs. A is also salaried. Mr. A is paying LIC premium for his wife and is claiming tax benefit under 80 C which says - "Any amount that you pay towards life insurance premium for yourself, your spouse or your children can be included in Section 80C deduction".

Since the policy is in Mrs. A's name, Can Mrs. A also claim tax benefit for the same policy? Is it a violation?

If yes, then under which section of the Income Tax Act? (or any other complementary provisions of the IT Act)



Learning

 4 Replies

ROHIT SHARMA (Legal Advisor )     08 December 2014

1. It  is simple as it is. Either of such person can can take the benefit under 80 C. But not both. Obviously it would attract the folly of false declaration.

Suhasdarshan (Associate)     09 December 2014

Thank You Adv. Mohit Sharma!

Kumar Doab (FIN)     09 December 2014

The one who pays premium can claim the tex benefits. If the premium is paid by mode other than cash then.....only the one that has paid the premium.... can claim tax benefits.

SANJAY JOIL (LAW STUDENT)     04 January 2015

Both can claim for the same Policy but not for the same premium.  If the premium payment mode is half yearly, first half yearly premium can be paid and claimed  by  A   and  other half yearly can  be paid and claimed by Mrs. A.


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