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Doubt on 80c deduction for lic premium

541 views 11 replies
Hi, Can a Parent take deduction of LIC Premium paid on behalf of children (Majors), if the Policy is in the name of each child who is also filing Nil returns? And also to clarify whether Premium must be paid from account of the parent in order to avail deduction? If amount is paid from child's account parent would not be eligible for deduction?
Replies (11)

"If amount is paid from child's account parent would not be eligible for deduction?"

How can you justify that the payment was paid by parent?

If parents pay from their own or joint acc. and get receipt from LIC as paid by......... (parent).........., he/she can get 80C deduction.

Yes. Just wanted to clarify. And what if the child is re-imbursing the parent after they pay. Would they still be eligible to take the deduction?
if proper documentation is maintained then you can. however there is no express provision as such in Act. you can try

Thanks ! :)

Thanks! :)

Thanks! :)

If Premium is paid by Parent on behalf of (major) child. Can Child avail deduction?

If child is a major and working member, he/ she can avail deduction even if premium is paid by parent.
no. should be paid by self.

while paying LIC Premium online, website gives a message saying that premium should be paid by policy holder & not any third party & acknowledgement will be given in the name of the policy holder. Therefore, even if parent pays, policy holder only can avail deduction, right?

Right. provided the premium is accepted by website from parent.


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