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Doubt on 80c deduction for lic premium

Anonymous (-) (279 Points)

28 March 2017

Hi, Can a Parent take deduction of LIC Premium paid on behalf of children (Majors), if the Policy is in the name of each child who is also filing Nil returns? And also to clarify whether Premium must be paid from account of the parent in order to avail deduction? If amount is paid from child's account parent would not be eligible for deduction?

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11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 28 March 2017

"If amount is paid from child's account parent would not be eligible for deduction?"

How can you justify that the payment was paid by parent?

If parents pay from their own or joint acc. and get receipt from LIC as paid by......... (parent).........., he/she can get 80C deduction.

Anonymous (-) (279 Points)
Replied 29 March 2017

Yes. Just wanted to clarify. And what if the child is re-imbursing the parent after they pay. Would they still be eligible to take the deduction?

sivabommakanti (CA - Tax Consultant) (267 Points)
Replied 29 March 2017

if proper documentation is maintained then you can. however there is no express provision as such in Act. you can try

Anonymous (-) (279 Points)
Replied 29 March 2017

Thanks ! :)

Anonymous (-) (279 Points)
Replied 29 March 2017

Thanks! :)

Anonymous (-) (279 Points)
Replied 29 March 2017

Thanks! :)

Anonymous (-) (279 Points)
Replied 24 May 2017

If Premium is paid by Parent on behalf of (major) child. Can Child avail deduction?

Anonymous (-) (279 Points)
Replied 31 May 2017

If child is a major and working member, he/ she can avail deduction even if premium is paid by parent.

sivabommakanti (CA - Tax Consultant) (267 Points)
Replied 02 June 2017

no. should be paid by self.

Anonymous (-) (279 Points)
Replied 29 June 2017

while paying LIC Premium online, website gives a message saying that premium should be paid by policy holder & not any third party & acknowledgement will be given in the name of the policy holder. Therefore, even if parent pays, policy holder only can avail deduction, right?