LIC Deduction

This query is : Resolved

CA Sanjeev Kr Jain (Querist)
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25 March 2009 A LIC policy held in the name of Mr A & his wife

if the premium is paid by the father of A, will the father get the deduction u/s. 80-C.

very urgent

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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25 March 2009
Yes
The joint policy is on the name the one of the specified relative (Although the policy is in name name of one non specified relative also), since act does not prohibits the same(and condition of the section 80 C has been satisfied) , in my consideration deduction shall be allowed u/s 80C, subject to other conditions.

any sums paid or deposited in the previous year by the assessee

(i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);

(ii) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan referred to in clause (xii), on the life of persons specified in sub-section (4)"

and subsection (4)

(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and

(ii) in the case of a Hindu undivided family, any member thereof