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Lakshmi (Article) (166 Points)

25 January 2016

HELLO FRIENDS ONE OF MY FRIEND MRS. PINKY GANDHI PAYS LIC PREMIUM (FOUR TIMES IN A YEAR) OF HER MINOR SON BUT ONE LIC PREMIUM RS 5000 IS PAID BY HIS GRANDFATHER (PINKY'S FATHER). NOW WHO WILL GET DEDUCTION OF ONE LIC PREMIUM RS 5000 (WHICH IS PAID BY HIS GRANDFATHER) U/S 80 C WHETHER PINKY'S FATHER OR PINKY? PLEASE GUIDE

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 09 February 2016

Hello, Any amount that you pay towards life insurance premium for yourself, your spouse or your children allowed as deduction u/s 80C.
Grand Father/Pinky both can't get the tax benefit for Rs-5000.

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 09 February 2016

In case of an individual, deduction is available in respect of policy taken in the name of taxpayer or his/her spouse or his/her children. In case of a HUF, deduction is available in respect of policy taken in the name of any of the members of the HUF.

No deduction is available in respect of premium paid in respect of policy taken in the name of any person, other than given above.

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