LIC paid to grandchildren

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This discussion explores whether LIC premiums paid by a grandfather for his grandchildren are eligible for tax deductions. It clarifies that such payments are generally not deductible. The advice suggests the daughter-in-law should pay the premiums to claim the deduction. The conversation also touches upon tax implications when purchasing property below market value, noting the difference may be treated as a taxable gift.

swetha

swetha (Querist)
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18 November 2020 A Senior citizen pays lic premium of B & C grand childrens as B & C has lost their father. A has a daughter in law who is a income tax assessee. Can we claim deduction for Mr A when he pay LIC Premium of B & C treating the income of his daughter in law is not sufficient to bring up the childrens. or one child premium can be claimed by grand father and one child premium for her daughter in law if she pays
suggest how we can claim benefit under incometax for grand father and daughter in law

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 November 2020 LIC premium paid for grand children is not eligible for deduction. Ask daughter in law to pay the premium and claim deduction.

swetha

swetha (Querist)
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25 November 2020 If property is purchased below market value amd registered what is the impact of tax. And also property purchased below market value but stamp duty is paid for market value what is tax implications plz guide

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 November 2020 The difference amount will treated as gift and taxed in case of purchase from other than relative.

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