23 June 2021
My friend bought medical insurance for his dependent parents on which he wants to claim tax deduction u/s 89D. However he made the payment from his wife's bank account as he was getting a special discount on the premium by making the payment through that bank. Can he transfer the same amount to his wife's account and claim 80d deduction on his ITR ( Wife is not income tax payee) ? Or does he have to make premium payment from his own account only to claim benefit of 80D ?
23 June 2021
I don't think there is any mandatory requirement to transfer the premium from one's own bank account. Requirement is that the premium should not be paid in cash. I think if the premium is transferred to the wife using banking channels, then 80D deduction should be available. Let's see if anyone has any other view on this.
CAclubindia
