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Employer employee query

10 December 2018

Dear,

I am 50 years old and running a proprietorship firm and my wife and one child are working in company can I buy insurance for saving tax under this scheme.

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174190 Points)
Replied 10 December 2018

Which insurance scheme?

Life insurance or health insurance?

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RAJKUMAR TG (397 Points)
Replied 10 December 2018

insurance is a financial product which covers risk involved...life, assets and so on.
investment in above for the sake of exemption only is foolishness.
if u view insurance as an investment vehicle then dont go for it.
think about alternatives like elss.
first ur purpose must be known before we decide.

Atif Khan (151 Points)
Replied 10 December 2018

You can either invest in LIC for life insurance and get a deduction upto Rs 1.5 in the year or premium paid whichever is less. It is applicable to your wife and independent son as well.. section 80C

You can also get a health insurance (mediclaim) deduction upto Rs 25000 or the premium paid whichever is less u/s 80D.. But you cannot claim the deduction for your independent son..

also you can invest in MF to get a deduction of 1.5 lakh u/s 80C.