29 November 2011
Deduction u/s 80C of LIC premium allowed only to individual,spouse, & Children of individual whether dependent or not. in this case premium paid for grand child will not allowed as deduction
29 November 2011
hardik sir deduction u/s 80C also not allowed for premium paid for parents read below circular no-574 of CBDT
493. Whether deduction is available in respect of premia paid on the life insurance policies on the lives of adult children, irrespective of their status; for example, premia paid on a policy on the life of a married daughter
1. Section 80C of the Income-tax Act allows, inter alia, deductions while computing the total income of an assessee of any sums paid in the previous year by the assessee individual out of his income chargeable to tax, to effect or to keep in force an insurance on the life of the assessee or on the life of the wife, or husband, or any child of the assessee. Representations have been received by the Board regarding the availability of relief under this section in respect of premia paid on the life insurance policies on the lives of adult children, irrespective of their status; for example, premia paid on a policy on the life of a married daughter.
2. It is hereby clarified that relief under the said sections is available in respect of such cases also. This relief will continue to be available under the new section, introduced by the Finance Act, 1990, as the language of the new section is in pari materia with that of section 80C of the Act.
CAclubindia
