Section 80 C Benefit

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Jignesh Desai (Querist)
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21 April 2011 Suppose a person - Say X , pays Life Insurance Premium for another person , Say Y for Rs. 1,00,000 . Now , who qualifies for the 1,00,000 deduction from Gross Total Income for the year - X or Y ? .

Also , suppose a person paid Rs 1,00,000 as Life Insurance Premium on 15th April 2011 . Would he be eligible to claim this amount as Deduction from his Gross Taxable Income for the Assessment year 2011-12 ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 April 2011 Life Insurance Premiums:

Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.

If paid in 15th April 2011 deduction can be claimed for AY 2012-13. Deduction available in the previous year in which payment was made.

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