Can I get the deduction u/s 80C for payment on behalf of my wife ?
Whether making payment of LIC premium to policy of major child will be eligible for claim under section 80C
Whether payment of LIC premium of my independent and major child will be eligible for deduction u/s 80C ?
An individual can avail the benefit of deduction under section 80C forpayment of investments on behalf of his/her family members(Individual/Spouse/Children) up to Rs. 1,00,000.
1. Annuity plans
2. Life Insurance Premium
3. Public Provident Fund
Life Insurance Premium
In case of an individual policy should be taken on his own life, of the spouse or any child.
Annuity plan should be taken in the name of the individual, his wife/her husband on any child of such individual.
Public Provident Fund (PPF)
An individual can open public provident fund account in his own name or in the name of minor of whom he is the guardian. One can get the deduction u/s 80c, deposit in his own account, or his/her spouse or in the account of his /her children.
Important Note: Under Public Provident Fund (PPF) the maximum contribution is Rs. 70,000/-.
ULIP should be taken on his own life, life of the spouse or any child.
Hindu Undivided Family (HUF) can also avail the deduction u/s 80C for investmenton the name of any member of the family.
Child may be
Example for life insurance Premium paid for family members
Compute the eligible deduction u/s 80C for payment by a on behalf of his family members as following
1. LIP (Life Insurance Premium) on his own life – Rs. 20000/-
2. LIP on the life of his wife – Rs. 30000/-
3. LIP on the life of his major son (Not Dependent on A) – Rs. 40000/-
4. LIP on the life of his dependent brother – Rs. 5000/-
Amount eligible for deduction u/s 80C will be Rs. 90000 (20000+30000+40000) except LIP on the life of his dependent brother.