25 October 2012
I want to know that if father has taken policy for his own but premium is paid by daughter, then whether father is allowed to claim deduction of the same? or daughter should claim it?
25 October 2012
It is always the person paying the premium who can claim the deduction. Secondly no deduction can be claimed if the policy is in the name of parent.
25 October 2012
First of all section 80C deduction doesn't allowable to the children s regarding the LIC policies taken on the name of the parents.
And 80C deduction allowable to the persons who actually make the payment.
So for you case in case such premium payment is through cash then we can adjust our accounts regarding the such payment is made by the father then he can claim. In case such payment is made through cheque and the cheque issued from the father's account then also we can change our accounts and father can claim.
In case of no sources of income to the father to met such premium payment or it paid through daughter's account cheque then father cann't claim as well as daughter also can't claim because of 80C doesn't allow to the children s.
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