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Breakup of section 80c deduction

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manoj kasana

38 Points Posted on 29 April 2020

let's assume that husband take a lic and premium paid rs 170000
now in this case can it is possible that husband get benefit rs 140000 in his income tax return and wife get deduction with remaining balance rs 30000 in her it returns.

Replies (2)

Quick Summary

This discussion clarifies the rules around claiming life insurance premiums under Section 80C of the Income Tax Act. While premiums paid for policies taken in the name of the taxpayer, their spouse, or children are eligible for deduction, only one taxpayer can claim the benefit. In this scenario, the husband can claim a deduction up to the limit of Rs 1,50,000, but the wife cannot claim any part of the deduction for the policy taken in his name.

Anchal Anita Malhotra

22 Points Posted on 30 April 2020

Life insurance premium payments can be claimed as deduction under section 80C subject to maximum limit of 1,50,000. Taxpayer can get the deduction for the policy taken in name of taxpayer, his spouse and his children. So in this case husband can take deduction of maximum 1,50,000 (subject to the condition that premium is less than 10% of sum assured) . Wife cannot claim any deduction.